Canadian-based producer Majestic Gold has successfully negotiated a $35.5 million share sale to one of China’s leading venture capital management companies. NewMargin Ventures has purchased the majority of the 197.5 million shares with several other Asian-based investors sharing the remaining portion. 1

Majestic’s president Rod Husband says, “We are very pleased to have concluded this financing with such a highly respected venture capital group as NewMargin Ventures as lead investor. A strong presence in critical Asian markets is especially important as Majestic looks to add further projects and grow both its gold production and development-stage project pipelines. The combination of strong financing partners and the knowledge and expertise of Deloitte have all of us at Majestic very excited about the future,” he said.

NewMargin is based in Shanghai and Beijing and is managing about $1.5 billion in capital for domestic and foreign investors. It is the first venture Chinese capital management company to manage and advise both domestic and offshore funds.

Majestic has further engaged Deloitte to act as its financial advisor to pursue merger and acquisition transactions that will maximize shareholder value, including the acquisition of Asia Pacific gold projects with the aim of building a strong gold-focused group in the region.

Deloitte’s global mining M&A leader Jeremy South says, “Our team of Mining M&A professionals in Asia will work closely with the Majestic management team to deliver its goal of building an intermediate gold producer in Asia Pacific. We look forward to leveraging our global reach and expertise to assist Majestic.”

The proceeds from the placement will be used to finance capital expenditures at the company’s 2.32 million ounce Song Jiagou gold project which is on Jiaodong Peninsula in eastern China’s Shandong Province. The capital will also fund evaluation and acquisition of additional projects.

www.majesticgold.net

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