Private equity firm Denham Capital has closed its first stand-alone mining fund, topping out at $US558 million ($747 million) from global institutional investors.
The Denham Mining Fund will be used to expand its metals and minerals project portfolio with operations that are close to or in production across four global regions: Australia, Canada, South America and Africa.
The planned expansion will particularly focus on targeted investment of base metals, thermal coal and speciality minerals. Carl Tricoli, the managing partner and co-founder of Denham Capital, said the company was grateful for the support that had been received.
“The close of our first mining fund marks a significant and strategic milestone for Denham Capital,” he said. “We are pleased that our limited partners share our belief that there is a robust pipeline of opportunities across the global mining sector and that they chose to work with us.”
The fund will see Denham partner with management teams that have proven experience in the industry; the fund brings Denham’s investment total to $US9.8 billion ($13.3 billion) overall. Current Australian mining investments include Sydney-based coking coal company Pembroke Resources and Perth-based base metals explorer Auctus Minerals.
International investments include Pangea (South Africa), rare earths-focused Mining Ventures Brasil, Santiago Metals and Stellar Mining (Peru). Denham also holds a number of energy and oil and gas interests across several countries, including the US.
“It’s an attractive market where we see in many jurisdictions the opportunity to secure projects that meet our investment criteria,” said Bert Koth, managing director and partner of the Denham Mining Fund.
“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.”