Majescor Announces the Closing of the 1st Tranche of a Non-Brokered Private Placement

Majescor Resources Inc. MJX
1/22/2013 4:07:22 PM
Majescor Announces the Closing of the 1st Tranche of a Non-Brokered Private Placement

OTTAWA, ONTARIO--(Marketwire - Jan. 22, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Majescor Resources Inc. ("Majescor" or the "Company") (TSX VENTURE:MJX) has revised the terms of its non-brokered private placement offering (the "Offering") announced October 16, 2012, as follows:

The Offering consists of up to 25,000,000 units (the "Units") at a price of $0.09 per Unit for gross proceeds of up to $2,250,000. Each Unit will consist of one (1) common share of the Company (a "Share") and one (1) common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one (1) additional common share of the Company at a price of $0.15 for a period of twenty-four (24) months following the closing of the Offering. The Warrants are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange Inc. (the "Exchange") is equal or greater than $0.30 for a period of 20 consecutive trading days any time after the expiry of the four (4) month resale restriction period, in which event the Company may give the holder a written notice and the Warrants will automatically expire, if not exercised, 30 days after receipt of such notice.

In connection with the Offering, the Company will pay up to 8% commission of the gross proceeds of the Offering and may issue a maximum of 8% of non-transferable warrants entitling the holders to acquire the same number of common shares at a price of $0.12 per common share for a period of eighteen (18) months following the closing of the Offering.

The net proceeds from the Offering will be used for surface work on the SOMINE project in Haiti and for general working capital requirements.

All securities issued in the Offering will be subject to a four month hold period and regulatory approval.

On January 18, 2013, Majescor completed the 1st tranche of its private placement by issuing 2,500,000 units for gross proceeds of $225,000. All securities issued in this private placement are subject to a four month hold period expiring on May 19, 2013.

About SIMACT Alliance Copper Gold Inc. and SOMINE SA

SIMACT Alliance Copper Gold Inc. ("SACG") is a 100%-held subsidiary of Majescor. SACG is the majority shareholder of SOMINE SA, a registered Haitian corporation holding 100% of the mineral rights to the SOMINE project. SOMINE SA has designated SACG as the Technical Operator of the SOMINE project exploration programme.

About Majescor Resources Inc.