British Columbia-based Majestic Gold has announced a letter of intent (LoI) to acquire a gold project in China.
Majestic, through its 70.5%-owned Persistence Resources Group subsidiary, will acquire 70% of the issued share capital of the target company.
The target company is principally engaged in gold mining and processing, emergency rescue for mine accidents and preventative safety inspection, property leasing and investment with its own fund.
The target company owns mining licences of three gold mines located in Yantai city of the Shandong province.
Persistence is conducting preliminary due diligence on the target company.