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China’s NewMargin leads $36m round for Majestic Gold

  • Alvina Yuen
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Shanghai-headquartered NewMargin Ventures has agreed to lead a $36 million financing round for Vancouver-based Majestic Gold. The proceeds will be used to finance capital expenditures at the company’s Song Jiagou mineral project in Shangdong Province, as well as acquisitions.

The private placement of the gold producer will take place through the sale of 197 million units at the price of $0.18 per piece. Each unit will consist of one common share of Majestic Gold and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of Majestic Gold for a period of 24 months at an exercise price of $0.20.

Several other Asian-based investors will also participate and Deloitte is employed to act as financial advisor. However, the completion of the offering is subject to regulatory approval.

"This [transaction] has enabled us to build a strong Asian shareholder base as we look to expand our presence in the region," Rod Husband, CEO of Majestic, said in a statement. "The combination of strong financing partners and the knowledge and expertise of Deloitte have all of us at Majestic very excited about the future."

Founded in July 1999, NewMargin Ventures focuses on IT, sustainable growth technology, healthcare and high margin manufacturing. It currently has about $1.5 billion under management from both domestic and foreign investors.

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