Shanghai venture capital firm NewMargin Ventures has agreed to lead a $36m funding round for Majestic Gold, a Vancouver-based emerging gold producer in the Shandong Province of China, alongside several other Asia-based investors.
The new round will be used to finance capital expenditures at Majestic’s Song Jiagou mineral project in Shangdong Province, as well as acquisitions, it said.
The private placement of the gold producer will be made through the sale of 197 million shares priced at $0.18 each.
Deloitte is acting as financial advisor. The completion of the offering is subject to regulatory approval.
“This [financing round] has enabled us to build a strong Asian shareholder base as we look to expand our presence in the region,” Majestic CEO Rod Husband said in a statement.
NewMargin Ventures focuses on IT, sustainable growth technology, healthcare and high margin manufacturing. It currently has around $1.5bn of assets under management.
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