Scipion Capital, an African-focused investment firm with offices in London and Geneva, has a launched a new mining fund exposing investors to the recovery of the junior mining and natural resources sector in Africa.

The Scipion Mining & Resources Fund is targeting 50 per cent returns. It is open to investors with $15 million of seed capital commitments and requires a minimum investment of $500,000.

“Scipion will supply partner companies with funding that will allow them to initiate mining projects…The junior mining industry has suffered significant damage during the global downturn, and the fund’s strategy will enable the fund to build an early equity stake in the distressed stock prices of these companies,” said Nicolas Clavel, fund manager and chief investment officer at Scipion.

According to Scipion, Africa has over 80 per cent of the world reserves of platinum, and more copper than any other region, while its companies have low level of debt, pay high dividends and can be bought at a more cost efficient price to earnings ratio than most other emerging markets. Scipion’s investments will help fund mining projects in South Africa, Namibia, Rwanda, Zambia, Ghana, Tunisia and the Democratic Republic of Congo.