Denham Capital, a global energy and resources private equity firm, said that it has closed the Denham Mining Fund, its first stand-alone mining fund at $558m.
Image: The Denham Mining Fund will target investments in mining projects in Australia, Canada, South America and Africa. Photo: courtesy of etaphop photo/ FreeDigitalPhotos.net.
The company said that the Denham Mining Fund will be utilized to grow its mining portfolio across Australia, Canada, South America and Africa.
The new fund was raised with third-party commitments from institutional investors across the world, representing major foundations, endowments, public and private pension funds, sovereign wealth funds and family offices, said the private equity firm.
Denham Capital said that through the new mining fund, it will persist with its strategy of collaborating with management teams with established track records to buy out companies and assets in the metals and minerals sectors that are near to or already in production.
The company revealed that the Denham Mining Fund will pursue investments in base metals, metallurgical coal, and industrial and specialty minerals in Australia, Canada, South America and Africa.
Denham Capital Denham Mining Fund managing director and partner Bert Koth said: “It’s an attractive market where we see in many jurisdictions the opportunity to secure projects that meet our investment criteria.
“We seek to partner with local management teams who understand capital efficiency and can demonstrate edge in accessing opportunity and execution through their superior technical experience and regional knowledge.”
With the closing of the Denham Mining Fund, the total investment and committed capital under Denham’s management has gone up to nearly $9.8bn.
Currently, the Australian mining portfolio of Denham comprises Sydney-based Pembroke Resources, which is engaged in developing metallurgical coal projects in the Asia-Pacific region and Perth-based Auctus Minerals, which is into development of base metals assets in Australia.
The company’s other portfolio companies are Mining Ventures Brazil, which is into heavy rare earths project in Brazil, Johannesburg-based Pangea, Chile-based copper producer Santiago Metals and Peru-based Stellar Mining.
In September 2017, Denham made a $250m deal to sell its portfolio company JDS Silver, the owner of the high-grade silver-zinc-lead Silvertip Mine in northern British Columbia, Canada, to Coeur Mining.