Sprott has launched an offshore global mining fund with Zijin Mining Group.
All relevant regulatory approvals have been received in Canada and the People's Republic of China and the fund has been initially seeded with USD100m from Zijin and USD10m from Sprott.
"We are very pleased to launch this new fund which will allow us to open a new market for our investment products," says Peter Grosskopf, chief executive of Sprott. "Zijin is the largest gold producer and the second largest mined copper producer in China and is listed on both the Hong Kong and Shanghai stock exchanges. We believe the combination of Zijin's technical strengths and Sprott's resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold."
The fund management company is a joint venture between Sprott and Zijin and will invest primarily in the publically-listed equity and debt instruments of gold, other precious metals and copper mining companies. The fund will be co-managed by affiliates of Sprott and Zijin. Under the joint venture agreement, Americas Now Resources Investment Management has agreed to provide technical and marketing services to the fund.
The target size of the fund is USD500m and the company anticipates receiving additional commitments from onshore Chinese investors beginning in the fourth quarter of 2013.