en.Wedoany.com Reported - Majestic Gold Corp (TSX-V: MJS) has received conditional approval from the TSX Venture Exchange for a private placement of up to C$49.2 million (approximately US$49.59 million).

The private placement plans to issue up to 384.6 million common shares at a price of C$0.13 per share, expected to close on June 25, 2026, or on a date determined by the company.

Majestic Gold stated that the proceeds will be used for strategic equity investments, acquisitions, and joint venture opportunities outside of China, while also advancing technical studies, project development, and supplementing working capital.

Shareholder Fan Zhong Kong has raised objections to the private placement. On June 14, the company issued a written offer to Fan Zhong Kong, allowing him to subscribe for shares on a pro-rata basis to maintain his shareholding percentage. The offer is valid for 30 days from the date of issuance.

Fan Zhong Kong has filed a lawsuit in the Supreme Court of British Columbia, seeking an injunction to block the private placement and requesting the removal of four directors. The injunction hearing is scheduled for June 22, 2026. Majestic Gold denies the allegations and stated it will vigorously defend the lawsuit.

Assuming full subscription of the private placement and Fan Zhong Kong's participation, the total number of issued and outstanding common shares will increase from approximately 1.04 billion to approximately 1.48 billion upon completion of the transaction.

Majestic Gold is a low-cost junior gold producer engaged in commercial gold production in eastern Shandong Province, China, operating projects including the Songjiagou Gold Mine and the Mujin Gold Project.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com