Toronto-based Sprott Inc. (TSX: SII) Wednesday announced that the alternative asset management company has entered into a joint venture agreement with Zijin Mining Group Co., Ltd., one of the largest gold and copper producers in China, to set up an offshore global mining fund.
The fund will focus primarily on investment opportunities in equities and debt instruments of precious metals producers, Sprott says.
It will be co-managed by affiliates of Sprott and Zijin. Under the agreement, Americas Now Resources Investment Management Corp. has agreed to provide technical and marketing services.
The target size of the fund is US$500 million.
Zijin has agreed to make capital contributions of US$100 million, while Sprott will provide initial capital contributions of US$10 million.
The fund will raise additional commitments from other investors, primarily in China.
The launch of the fund is conditional on Sprott receiving the necessary regulatory approvals in Canada and Zijin receiving the relevant regulatory approvals in the People’s Republic of China.