X2 Resources frees investors from financial commitments – by Arash Massoudi and Neil Hume (Financial Times – October 25, 2016)

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Mick Davis’s investment fund restructures after it fails to agree any deals in 3 years

The investment vehicle launched by mining executive Mick Davis has released investors from their financial commitments after the fund failed to agree any deals in three years.

X2 Resources has restructured the fund and changed its governance so that key investors no longer have a veto over potential acquisitions, according to sources close to the fund. It will consider raising capital on a deal-by-deal basis as Mr Davis and his team continue their search for bargains in metals and mining.

Mr Davis is one of the highest profile figures in the mining industry. He made a fortune building Xstrata into a FTSE 100 company before selling it to Glencore in a $30bn deal.

X2 was launched three years ago with total commitments of $5.6bn, including $500m from each of six key sponsors. Mr Davis’s vision was to create a metals and mining group from assets he expected miners to sell following the end of the so-called commodities supercycle.

But the overhaul of X2 highlights some of the difficulties private buyers have faced prising assets from large mining houses during the worst downturn in commodity markets for a generation. X2 declined to comment on the restructuring, which was flagged earlier this year.

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