Toronto firm takes the long view when it comes to metal prices – by Ian McGugan (Globe and Mail – June 14, 2016)

A Toronto-based private equity firm is finding a receptive audience among institutions looking for a way to bet on a long-term recovery in metal prices.

Waterton Global Resource Management said on Tuesday that it has raised $725-million (U.S.) to bankroll a fund that will invest in gold and copper properties in politically stable jurisdictions.

The Waterton Parallel Fund intends to follow in the footsteps of the company’s two-year-old Precious Metals Fund II, according to Isser Elishis, Waterton Global’s managing partner and chief investment officer. The earlier fund raised more than $1-billion in 2014, according to a company news release.

The new fund is “basically an extension of our current strategy,” Mr. Elishis said. “It’s mostly our existing investors. We’re not launching a new strategy or a new view or a new philosophy.”

Mr. Elishis’s pitch for both funds has been simple but compelling. He says metal prices will be substantially higher down the road, so now is the time to buy mining properties, especially ones where his team can add value over the next three to seven years by optimizing operations, centralizing functions or navigating the permitting process.

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