By Alex MacDonald
LONDON--U.K.-based X2 Resources, run by the former head of
Xstrata PLC Mick Davis, said Wednesday that it has $4.8 billion in
funding after accruing another $1 billion from its latest round of
capital raising.
X2 Resources aims to use the funds to create a mid-tier,
diversified mining and metals group. The group was established by
Mr. Davis following the sale of Xstrata PLC to miner and
commodities trader Glencore PLC (GLEN.LN) for $29.5 million in May
2013. Over a period of ten years, Mr. Davis and his team
transformed Xstrata from a ferrochrome and zinc business with a
market capitalization of $500 million into a global, diversified
mining company valued around $50 billion. Mr. Davis, along with
several of his Xstrata colleagues, hope to replicate the same
success but as a privately-held company.
X2 Resources said it now has $3.3 billion in committed equity
capital, which is available for immediate draw down, and $1.5
billion in conditional equity capital, which could be used to
purchase mining and metal assets.
"With almost $5 billion in equity and access to significant
additional debt funding,...we are currently reviewing a number of
opportunities in the metals and mining sector," Mr. Davis, X2
Resources' CEO said in a statement.
Write to Alex MacDonald at alex.macdonald@wsj.com
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