Sprott Launches New Offshore Fund with Zijin Mining Group Published Sep 27, 2013.

http://www.resourceintelligence.net/mining-sector-to-get-500-million-boost-from-zinjin-sprott/

Miners with advanced stage projects may find themselves with a new potential resource for capital.

Canadian asset manager Sprott Inc (TSX:SII) and Chinese gold miner Zijin Mining Group Co Ltd have agreed to set up an offshore mining fund targeted at $500 million.

Sprott Chief Executive Peter Grosskopf told Reuters, “Precious metals equities are historically cheap right now and there is tremendous value to be captured.”

Zijin also released a statement saying that the fund will invest in equities and debt instruments related to gold, other precious metals, copper and other minerals. The fund will be co-managed by the two firms.

The mining fund will also invest in physical bullion, and will not be used for early stage or greenfields projects, according to Reuters. Most proceeds will be used in North America, though some will go to overseas companies.

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.

Zinjin is China’s second largest gold miner by output and has been part of some other major acquisitions lately.