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Majestic Announces Details of Proposed Listing on HKEX For IPO of Subsidiary Persistence Resources
(TheNewswire) Vancouver, British Columbia - December 14, 2023 - Majestic Gold Corp. (&#...
About this update from Majestic Gold Corp.
[{"type":"text","content":"Majestic Announces Details of Proposed Listing on HKEX For IPO of Subsidiary Persistence Resources \n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Vancouver, British Columbia -\nDecember 14, 2023 - Majestic Gold Corp.\n \n \n (“\n \n \n Majestic\n \n \n ” or the “\n \n \n Company\n \n \n ”)\n \n \n (TSXV:MJS\n \n \n )\n \n \n (\n \n \n FSE:A0BK1D)\n \n \n is\npleased to announce that Majestic’s 94% owned subsidiary,\nPersistence Resources Group Ltd. (“Persistence”), has issued its\nprospectus in respect of its listing of shares in the capital of\nPersistence (the \"Shares\") on the Main Board of The Stock\nExchange of Hong Kong Limited (the \"HKEX\") and the initial\npublic offering (the \"IPO\") of newly issued Shares of\nPersistence representing 25% of its total issued and paid-up Shares\nupon successful listing of the Shares.\n \n \n \n \n As previously announced, Persistence filed its listing\napplication with the HKEX on March 30,2022. Through its subsidiary,\nPersistence owns a 75% indirect interest in Yantai Zhongjia Mining Co.\nLtd., which operates the Songjiagou Gold Mine (the\n\"Property\") located in the eastern part of the Shandong\nProvince, China. While Majestic will continue to own approximately\n70.5% of total issued and paid-up Shares of Persistence upon\nsuccessful listing of the Shares, which could materially dilute\nMajestic’s ownership in the Property. Subsequent to the successful\nlisting of the Shares on the HKEX, Persistence could issue additional\nShares, which may further dilute Majestic's cumulative effective\ninterest in the Property to less than 50%. The Board of Directors of\nMajestic, with the advice from its legal and financial advisors, have\nconsidered the potential dilutive effects and determined that a\nlisting on the HKEX by Persistence may achieve a greater valuation for\nPersistence, which would help to better access capital for its future\nneeds. Accordingly, the Board of Directors of Majestic unanimously\napproved the IPO.\n \n \n \n \n \n \n Offering Details\n \n \n \n \n \n \n Persistence plans to\noffer a total of 500,000,000 Shares (subject to the over-allotment\noption), of which 450,000,000 are international offer shares (subject\nto reallocation and the over-allotment option) and 50,000,000 are Hong\nK...