NEW AFRICA MINING FUND II - NAMF II


Overview

  • Reference: P-Z1-BAA-004
  • Approval date: 13/12/1901
  • Start date: 01/01/2002
  • Appraisal Date: 15/05/2010
  • Status: OngoingOnGo
  • Implementing Agency: New Africa Mining Fund
  • Location: Mauritius

Description

NAMF Capital Partners (NCP) will manage NAMF II. NCP was formed between the management of Decorum Capital Partners Ltd. (DCP) and Tranter Holdings Ltd. (TH). Having managed NAMF I, DCP has a proven track record in investing into mineral resource projects. TH is a 100% BEE owned mining investment and services company. One of TH's objectives is to increase BEE participation in invested projects. The Fund's target size is USD 300 million split into a USD and a ZAR partnership. The first closing aims to mobilize USD 150 million by summer 2010, with a second closing that will follow thereafter. NAMF I had a size of around 90 million USD and with a total of 10 investments done under NAMF I, NCP feels that it has gathered sufficient experience to significantly increase the fund size.


Rationale

NAMF II will provide scarce equity capital and catalyze additional funds for mineral resource projects. In particular at exploration stage funding is in short supply. The Fund's focus on exploration and early development projects will also significantly contribute to maximizing the economic value of projects. Involved in the structuring of mineral resource projects, NAMF II will ensure compliance with environmental standards, maximize local content including job creation, and improve revenue transparency and governance (EITI).


Benefits

The Bank's additionality is fourfold:

(i) Fill a financing gap through direct equity financing and through a catalytic demonstration effect to encourage commercial lenders to contribute to NAMF II;

(ii) ensure compliance of NAMF II investment projects with environmental and social standards in line with the Bank's policy;

(iii) ensure that NAMF II's investment strategy includes considerations of local content, revenue transparency and governance; and

(iv) in specific instances, consider providing debt financing for the Fund's investment projects to facilitate their development.


Key contacts

TETTEY Ernest Obeng - OPSD2


Costs

Finance source Amount
ADBUSD 16,493,267
DeltaUSD 87,517
TotalUSD 16,405,750