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Majescor Resources Inc.: Majescor Private Placement Offering, Allyson Taylor Partners Inc. Retained as Investor Relations Consu

^{Published on 2009-05-26 13:48:47, Last Modified on 2009-05-26 13:50:11 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - May 26, 2009) - Majescor Resources Inc. ("Majescor" or "the Company") (TSX VENTURE:MJX) announces the opening of a non-brokered private placement offering (the "Offering") of up to 3,000,000 units at a price of $0.20 each for gross proceeds of up to $600,000.

Each unit will consist of one common share of the Company and one common share purchase warrant, which entitles the holder to acquire one additional common share of the Company at a price of $0.30 for a period of 14 months following the closing of the Offering or if the trading price of the common shares has been equal to or greater than $0.40 for a period of 10 consecutive trading days commencing on the day following the expiry of the four (4) month resale restriction period. The funds raised pursuant to the Offering will be used to fund the Company's general working capital. It is anticipated that the closing will take place by the end of the month. Directors and officers of the Company are expected to participate in the private placement for a total amount of approximately $50,000.

All securities issued in the Offering will be subject to a four month hold period from the closing of the Offering. Completion of the placement is subject to the approval of the TSX Venture Exchange.

Investor relations agreement

Majescor has retained Allyson Taylor Partners Inc. ("ATP") as its investor relations consultant. The company carefully selected ATP to help increase its exposure to institutional and retail investors throughout North America and Europe. The agreement with ATP is effective May 26th, 2009, is for a 3-month term, and may be terminated on 30 days notice. ATP will be paid a monthly fee of $10,000 plus all pre-approved expenses. The Board has granted ATP 200,000 stock options priced at 15 cents per share, being the closing price of Majescor's shares on the TSX Venture on May 25th, 2009, for a 24-month term. The stock options will vest on a quarterly-basis. In accordance with the Company's stock option plan and TSX Venture Exchange Policy 4.4, these options will expire 30 days following should the agreement be terminated by Majescor.

Grant of options

In other news, the Board of Directors granted today 385,000 stock options to Officers, Directors, Employees and Consultants. Each stock option entitles the holder to subscribe for one common share of Majescor at a price of $0.15 per share for a five-year period.

Majescor is a junior explorer focusing on emerging mineral districts. Majescor's project portfolio includes two uranium exploration projects in Quebec and one in the Baker Lake basin in Nunavut. The Quebec properties include Mistassini (100%-owned; under option to Strateco Resources Inc.) and Lac Laparre (100%-owned; under option to Santoy Resources Inc.). In Nunavut, the Company holds 100% mineral rights to the Baker Lake uranium property. In addition to uranium, Majescor owns 100% mineral rights to four gold and base metal properties in Madagascar (under option to Sunridge Gold Corp.), as well as 100% mineral rights to the Mirabelli gold and base metal property in Quebec. Recently, Majescor signed an agreement with SIMACT Alliance Copper Gold Inc. ("SACG") and its principal shareholders whereby the Company has acquired a 10% interest in SACG, as well an option to acquire the remaining 90% interest in the Somine property with both gold and copper potential which is located in the North-East mineral district of Haiti.

On behalf of the Board of Directors of Majescor Resources Inc.

Marc-Andre Bernier

President, CEO and Director

Forward-Looking Statements

This News Release includes certain "forward-looking statements" which reflect management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. This news release also contains forward-looking statements regarding the Company's use of proceeds from the Offering. These statements reflect Management's current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Majescor Resources inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

The TSX Venture Exchange (TSX Venture) does not accept responsibility for adequacy or accuracy of this release.