London giant BlackRock just took another bite out of mineral sands miner Sheffield Resources
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The big funds look to be getting their resources investments in order just before the Christmas break.
Gold explorer Prodigy Gold (ASX:PRX) and emerging mineral sands producer Sheffield Resources (ASX:SFX) are the beneficiaries of further cash injections by separate funds.
Private equity group Pacific Road Capital sunk a cool $2.3m in Prodigy’s recent rights issue to up its already substantial stake to 19.95 per cent from 15.6 per cent.
Prodigy managing director Matt Briggs told Stockhead Pacific Road had been a backer since 2014 and this is the first time the fund had participated in a rights issue.
The company also has heavyweights Independence Group (ASX:IGO) and St Barbara (ASX:SBM) on its register with stakes of 9.05 per cent and 10 per cent, respectively.
“When you look at the mid-tiers and the large companies, they’re becoming a lot more active, taking stakes in companies,” Mr Briggs said.
“Look at what IGO’s done, what Newcrest is doing, what St Barbara is doing with the likes of us, as well as some of the funds.
“They’re doing both joint ventures and taking equity stakes, and I think that is reflecting a shift in the market at the moment.”
Meanwhile, major fund BlackRock Group has upped its stake in Sheffield to 9.85 per cent from 6.45 per cent.
The London-based private investment group, which had $6.44 trillion worth of assets under management at the end of September, stumped up roughly $7.5m to pick up an extra 11.5 million Sheffield shares via a placement.
Sheffield raised $16m from the placement to institutional investors.
The company plans to use the cash to seek out a partner and continue work on building its Thunderbird mineral sands project.
Sheffield shares were down nearly 4 per cent at 63.5c just before midday AEDT.
West Perth-based Resource Capital Fund (RCF) has sold down its stake in uranium play Berkeley Energia (ASX:BKY) and is no longer a substantial shareholder.
RCF is a large fund, with around $3.6 billion worth of investments.
In its lifetime, the company has raised six private equity funds with total committed capital of $4 billion.
Gold hopeful Geopacific Resources (ASX:GPR), mineral sands producer MZI Resources (ASX:MZI) and uranium explorer Vimy Resources (ASX:VMY) are among 179 mining companies RCF has invested in since it was formed in 1998.
Since November 9 the fund has sold about 7.3 million Berkeley shares, earning it about $1.35m.