Zijin Mining Group Co., Sprott Inc., and Americas Now Resources Investment Management Corp. will establish a $500 million metals and minerals fund, according to a statement filed with the Hong Kong Exchange today.
Zijin, China’s biggest gold miner by market value, will contribute $100 million to the fund that will invest primarily in equities and debt instruments related to gold, precious metals, copper and minerals. Sprott, a Toronto-based fund manager, will provide $10 million and at least five percent of aggregate capital contributions, the company said in the statement.
Zijin reported Feb. 18 that its unaudited full-year net income fell to 5.2 billion yuan ($833 million) or 0.238 yuan a share, from 5.7 billion yuan, or 0.262 yuan a share, a year earlier as selling prices for some metals dropped and production costs increased. The decline in profit is its first for a full year, according a statement filed on the exchange that day.
Americas Now will provide technical and marketing services.