The second New Africa Mining Fund (NAMF II), an equity vehicle that focuses on investing in mining projects within the Southern African Development Community (SADC) Region, achieved its first close with total commitments of $111.1m.
Investors include African Development Bank (AfDB), Development Bank of Southern Africa, International Finance Cooperation, Swiss Investment Fund for Emerging Markets and DEG KFW Bankengruppe.
As stated by New Africa Mining Fund Principal, Neil Gardyne, like its predecessor, NAMF I, this second vehicle aims to provide risk capital for junior mining companies with projects in Africa, that can demonstrate a minimum 35% return on investment. “All mineral types, except diamonds and uranium, will be considered”, he added.
NAMF II focuses on the upstream stages of the mining investment cycle where value creation is highest – primarily exploration and pre-development activities by junior and intermediate companies. It will invest over 5 years and will have a life of 8 years.
Mr. Gardyne hopes to raise $300m with the fund’s second closing on 31 January 2012.
FinSMEs
05/02/2011