VANCOUVER – A dearth in the availability of traditional equity financing has led to the rise of specialist, mining related investment funds, and there looks to be another major player taking the field. In early March newly minted private mining venture X2 Resources announced an initial capital raise worth around US$5.6 billion, which it hopes will finance the creation of a new mid-tier diversified mining and metals group.
X2 is essentially the comeback vehicle for South African mining magnate Michael Davis, who served as chief executive of Xstrata for over a decade before the Anglo-Swiss multinational was taken out by Glencore (LON: GLEN) in early 2012 for US$41 billion, which stands as the largest mining deal in history.
Davis and former Xstrata CFO Trevor Reid announced the new venture in late 2013, when it was operating under the X2 Partners banner. The company quickly established an alliance with tycoon Richard Elman’s trading colossus Noble Group, and scored significant investment commitments from leading U.S. private equity outfit TPG Capital.
Read the complete article at NorthernMiner.com/news/mick-davis-x2-resources