Waterton Global Resource Management, a private equity firm that focuses on mining announced that it has raised more than a $1 billion for its most recent precious metals fund.

The Waterton Precious Metals Fund II will focus on late-stage development projects in politically stable jurisdictions, primarily North America. The fund is at $1.016 billion.

Private equity firms were once only minor players in mining, but an extended capital freeze has brought down valuations, attracting more firms to the sector and leaving miners with few other options to raise funds, Reuters reported. 

Bankers, deal lawyers and private equity firms are predicting a flurry of private equity transactions in mining this year by smaller, mining-focused private equity groups like Toronto-based Waterton.

"I think as the market stays depressed, people won't view it as depressed. People will view it as the new reality," said Isser Elishis, chief investment officer at Waterton told Reuters.

Investors and boards will have to decide whether to dilute their share bases or sell, said Elishis, and that is likely to boost private equity activity.
The firm will look at acquisitions, joint ventures and partnerships. The fund is set to run for nine years from last July, and acquisitions will likely be in the range of $25 million to $200 million, Elishis said.

"We aim to have the capital deployed over the next few years, but it will speed up or slow down depending on the opportunities," he said.
Waterton is already in the midst of a hostile bid for Chaparral Gold Corp, a Nevada-focused precious metals explorer.