X2 Resources raises $5.6bn for mining deals

5 March 2015 (Last Updated March 5th, 2015 18:30)

Former Xstrata chief Mick Davis’s mining company X2 Resources has successfully completed its initial capital raising process and raised $5.6bn in equity capital to use them for mining deals.

Former Xstrata chief Mick Davis's mining company X2 Resources has successfully completed its initial capital raising process and raised $5.6bn in equity capital to use them for mining deals.

The company secured the capital from a small number of investors to finance the creation of a new mid-tier diversified mining and metals group.

According to the company, the capital is one of the largest raised by a private vehicle and was extended in a bid to accommodate further demand.

The investors of X2 Resources include major sovereign wealth and pension funds.

"The capital consists of a total of $4bn in committed equity capital."

The capital consists of a total of $4bn in committed equity capital, which is available for immediate draw down, and $1.6bn in conditional equity capital.

X2 Resources founder Mick Davis said: "We would like to thank our investors for their support and vote of confidence and look forward to rewarding them through superior returns.

"The blue-chip nature of our investors and the scale of their commitments to date are clear endorsements of the X2 Resources team's strategy and our track record of creating value.

"We continue to carefully review a number of opportunities in the sector in detail."

According to people familiar with the matter, X2 has closed itself to new investors after having raised cash from sovereign-wealth funds, pension funds as well as private-equity firms such as TPG Capital.

The company's potential targets included assets held by mining giants such as Rio Tinto, BHP Billiton and Anglo American, and has held talks with all three companies.