X2 secured $2.5 billion of committed equity capital funding and up to a further $1.25 billion of conditional equity capital funding from a group referred to as the “Club Investors”

The Club Investors, which have contributed in equal amounts, comprise Singapore’s Noble Group, private firm TPG Capital sovereign wealth and pension fund investors.

Noble and TPG first confirmed an investment in X2 last year.

The committed equity capital is available for immediate drawdown and will be used to finance the creation of a new mid-tier diversified mining and metals group.

X2 said the funding represented a critical milestone and allowed its investment activities to begin

"We have attracted a very prestigious core group of large scale, high quality investors who share our vision of building a new mining group with the potential to generate attractive returns through the cycle,” Davis said.

“We believe the timing for this venture remains very opportune and we will now focus increased attention on starting the investment process.”

X2 said it was also in discussions with a further select group of potential investors who were also seeking to benefit from opportunities in the natural resources sector.

Davis formed X2 after leaving the top job at Xstrata last year when the company merged with Glencore.

Former Xstrata chief financial officer Trevor Reid, who also left once the merger was complete, has joined Davis at X2.

Noble has previously said the X2 team is made up of the same executives responsible for Xstrata’s creation.

SP Angel analyst John Meyer said the team knew the sector well and had a proven track record.

“It is great to see Davis back in the game and well backed after his success with Xstrata,” he said in a morning note overnight.

“His fund now has the firepower to take on new mining assets and we expect to see the money deployed relatively quickly into targets on Davis’ radar.”

Meyer said there were substantial funds held within a number of new mining funds which were yet to be allocated.

“The presence of so many new funds combined with Davis’ new mega-mining fund, X2 Resources, highlights to us the broad perception of value to be gained within the sector,” he said.

“The flow of new funds should help to lift the sector off its relatively low base while sector rotation away from technology stocks and back into ‘tangible assets’ may also help to lift sector valuations.”

Bloomberg last month reported that X2 had put in a bid of less than $1 billion for BHP Billiton’s Nickel West assets in Western Australia.