Majestic Gold Corp. Proposes Share Consolidation
730 - 1130 West Pender Street Vancouver, B.C. CANADA V6E 4A4 Telephone: 604-681-4653 Facsimile: 604-568-4902 TSX.V:MJS Email: [email protected]
MAJESTIC GOLD CORP. PROPOSES SHARE CONSOLIDATION
Vancouver, British Columbia, March 18, 2010 – Majestic Gold Corp. (TSX.V: MJS) ("Majestic") announces that at its Annual General and Special Meeting (the “Meeting”) of shareholders to be held on April 14, 2010, shareholders will be asked to approve a consolidation of all of the Company’s issued common shares on the basis of up to ten (10) old common shares for one (1) new common share, with the actual ratio (the “Consolidation Ratio”) to be determined by the Company’s board of directors after the Meeting. If the maximum 10:1 consolidation is effected, and if no other shares are issued between the date of this news release and the date of the consolidation, the consolidation will reduce the number of outstanding shares from 228,299,986 to approximately 22,829,998. No fractional shares will be issued. Any fractions of a share will be rounded down to the nearest whole number of common shares. The proposed consolidation is subject to shareholder approval and TSX Venture Exchange acceptance.
In a news release of February 24, 2010, the Company announced that it has entered into an agreement to acquire the remaining 40% of Yantai Zhongia Mining Enterprise. As part of the proposed transaction, an additional 168,000,000 shares (the “Acquisition Shares”) of the Company are proposed to be issued. Assuming completion of that transaction before the Meeting, the Acquisition Shares will be consolidated with the currently outstanding shares. If that transaction is not completed before the Meeting, the Company will defer implementation of the consolidation until after the acquisition has been completed. To ensure provision is made for that eventuality, the Company will also seek approval at the Meeting for consolidation of the Acquisition Shares at the Consolidation Ratio. If the maximum 10:1 consolidation is effected after the Acquisition Shares are issued, and if no other shares are issued in the interim, the consolidation will reduce the number of shares outstanding from 396,299,986 to approximately 39,629,998.
Management believes that the share consolidation is necessary to provide the Company with a share structure that will better attract capital financing and that will provide for future growth opportunities.
On Behalf of the Board of Directors MAJESTIC GOLD CORP.
Signed "Rod Husband"
Rod Husband, P.Geo President
Contact:
Investor Relations: (604) 681-4653 or 1-866-282-8398 Email: [email protected] or visit our Website: www.majesticgold.net
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.