Egyptian billionaire, Naguib Sawiris, has launched a €1.19 billion fund to manage his investments in the gold mining business.

The Luxembourg-based La Mancha Fund will be a "deep and long-standing value cap dedicated to gold mining and open to new investors," Sawiris said.

"The fund will also invest in other materials, such as lithium, needed for the production of electric cars.

Although the world's largest gold mining companies, such as Barrick Gold and Newmont Corporation, have grown exponentially in recent years through acquisitions and mergers, these groups remain unable to operate in some countries with mineral potential, such as Canada.

Thus, and in order to face these large companies in these regions, Sawiris assured that he will buy stakes in small companies in the sector, in addition to ensuring a strong presence in Endeavour Mining, the largest gold mining company in West Africa, as well as in Golden Star and Altus Strategies.

The fund will also include a 96.5 million investment in a "strategic alliance", of which it is not yet known who the other entity will be.

"The transition to a fund structure is timely when we are faced with consolidation opportunities, such as those before our eyes," argued the multi-millionaire.

Shares of gold mining companies have fallen 20% this year, according to NYSE Arca Gold Bugs Index, as investors have focused on other types of assets linked to economic recovery in the face of crisis, caused by the pandemic.