Miner Mick Davis gets First Avenue on board to build $4bn war chest

Mick Davis sold Xstrata to Glencore in 2013
Mining magnate Mick Davis is believed to have hired more advisers as he looks to build on his $4bn (£2.5bn) funds while hunting assets for his new mining company.

Davis has been working to build up funds since setting up X2 Resources following the sale of Xstrata to Glencore for $27bn last year.

Now, in addition to working with Goldman Sachs on fundraising, Davis is believed to have added US firm First Aven­ue, according to the Sunday Times.

Mining companies have been hit in recent years by low commodity prices, with many private equity firms cautious on investment while the market seems depressed.

The challenging commodity market has seen a number of big firms look to restructure and sell of assets.

Last month BHP Billiton announced a demerger to spin off assets into a new mining company, while AngloGold Ashanti last week also announcing its own spin off of non-South African assets into a new London-listed miner.

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