THE CANADIAN PRESS

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MONTREAL - Majescor Resources Inc. (TSXV:MAJ), a junior Montreal-based uranium explorer, says it plans to consolidate its common shares 10 to one and suspend a private placement financing announced in late August.

The company said Thursday it has called a shareholder meeting for Nov. 17 to seek approval for the consolidation.

"It is the board of directors' opinion, that Majescor's existing issued and outstanding common share structure is not conducive to securing additional equity financing and that a restructuring is warranted in order to facilitate attracting new investments to the company," it said in a release shortly before stock markets opened Thursday.

"Implementing the restructuring process in a timely manner will also put Majescor in a much stronger position to take advantage of potential value-added opportunities."

As a result, Majescor said it is suspending the private placement offering announced Aug. 29, a planned financing made far more difficult because of the seizing up of credit markets in the last month in the wake of the Wall Street financial crisis.

Majescor is a uranium explorer focused on four uranium exploration projects in Quebec and one in the Baker Lake basin in Nunavut.