Lewnowski, a founding partner of Red Kite Group, has spun off
one of the trader and hedge funds two mine finance
vehicles and resigned from the company.
Following a mutual
management decision to separate the mine finance business,
Lewnowski and a team of former Red Kite partners will run the
$1.14-billion RK Mine Finance Fund II as the Orion Mine Finance
The RK Mine Finance
Fund I will continue to be managed by David Lilley, Michael
Farmer and Harry Tefoglou, while Grant Gilmour and Paul
Coughlan will join the funds investment committee, a Red
Kite spokesman said.
"In reviewing their
strategic plans, they concluded that they would be most
effective in pursuing their respective visions for each
business and further optimizing returns for their investors by
dividing the operations," the spokesman said in a
The Orion fund will be
managed by Lewnowski and portfolio managers Douglas Silver, Ray
Jenner and Peter Rozenauers from offices in New York, Denver
and Sydney, Australia.
Former Societe General
Energy LLC and RBS Sempra Commodities LLP executive Limor
Nissan will join Orion as chief operating officer and general
counsel, a spokesman for the fund said in a statement.
Lilley, Farmer and
Lewnowski decided to spin off the fund in order to separate the
groups private equity investments from its hedge fund
business, the spokesman told AMM sister publication
$1.14 billion in investments are equity stakes, loans,
royalties and offtakes with miners, including Vancouver,
British Columbia-based Nevada Copper Corp.; Toronto-based Royal
Nickel Corp.; Melbourne, Australia-based Dart Mining NL;
Nicosia, Cyprus-based EMED Mining; London-based Frontier Mining
Ltd.; and Weatherly International Plc, London.
The new Orion fund
concluded a $91-million financing package with Weatherly Sept.
20 to fund the conversion of the 17,000-tonne-per-year Tschudi
underground copper mine in Namibia into an open-pit
Weatherly signed a
term sheet with Red Kite in December 2012 but the Orion funding
package has been amended to give Weatherly a more flexible
repayment period in return for a 1-percentage-point increase in
the interest rate, the mining junior said.
Lewnowski resigned as a member of RK Capital Management Sept.
17, Companies House filings show.
A version of the article was first published by AMM sister
publication Metal Bulletin.