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Persistence Resources Group Secures Significant Private Placement Financing

In a significant financial move, Majestic Gold Corp has announced that its subsidiary, Persistence Resources Group Ltd, listed on the Hong Kong Stock Exchange (HKEX), has completed a private placement financing round. This initiative has successfully raised a total of HK$472 million, approximately CAD$85.2 million. The funding is set to bolster the subsidiary’s ongoing projects and future acquisitions in the gold mining sector.

Operating under the stock code 2489, Persistence has issued 400 million common shares at a price of HK$1.18 per share, reflecting a strategic discount to the market.

This price represents a decline of approximately 19.2% in relation to the last closing price of HK$1.46 per share noted on the HKEX at the time of the agreement.

Details of the private placement

The completion of this private placement reflects investor confidence in Persistence’s growth potential. The shares offered represent about 20% of the total issued shares prior to this placement and account for approximately 16.7% of the total shares post-placement. This influx of capital is pivotal for various strategic initiatives.

Use of proceeds

Persistence Resources Group has outlined several key areas where the net proceeds from the placement will be utilized. Firstly, a portion of the funds will be directed towards potential acquisitions of gold mining projects, enhancing their portfolio and operational capacity. Secondly, the company aims to accelerate its business expansion, which is crucial in a competitive industry. Lastly, general working capital and corporate purposes will also be addressed with the funding.

About Majestic Gold Corp

Majestic Gold Corp is headquartered in British Columbia and is recognized as a low-cost junior gold producer. The company operates the Songjiagou Gold Mine, located in the eastern region of Shandong Province, China. This operation has established the company as a significant player within the gold production landscape.

For those seeking more information about Majestic Gold and its various initiatives, detailed insights can be found on their official website at www.majesticgold.com, as well as on www.sedarplus.ca.

Contact information

Individuals interested in reaching out for further details can contact James Mackie, the Chief Financial Officer and Corporate Secretary. He can be reached by telephone at (604) 560-9060, or via email at [email protected].

Forward-looking statements

As with any financial announcement, it is essential to approach the information with a discerning mindset. Certain statements within this announcement may be considered forward-looking statements, which are inherently subject to risks and uncertainties. These statements concern potential future events and conditions that may significantly deviate from current expectations.

Words such as “may,” “should,” “anticipates,” “plans,” and similar terms indicate forward-looking projections. While Majestic Gold strives to provide accurate forecasts, actual results could vary significantly due to various factors affecting the industry.

The successful completion of this private placement marks a critical step for Persistence Resources Group, positioning them for future endeavors in the gold mining industry.

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