7th Mar 2014 12:08
LONDON (Alliance News) - Global Resources Investment Trust PLC was Friday trading flat in its first day of dealings on the main market of the London Stock Exchange.
Shares were flat at 100 pence.
GRIT is a new investment trust that will invest in junior natural resources and mining companies. Investments will be made in the field of exploration and production of oil, gas, precious and industrial metals, and industrial and commercial minerals.
Its initial portfolio is made up of 41 companies with a combined value of about GBP39.5 million, which it acquired it in exchange for about 39.5 million shares at GBP1.00 each. The company has raised GBP5.0 million for working capital and investment purposes through the issue of convertible loan notes.
RDP Fund Management LLP has been appointed as GRIT's investment manager.
"With the natural resources sector at a cyclical low, and undervalued companies struggling to finance worthy projects, it is an opportune time for GRIT to join London's Main Market. By supporting these companies, GRIT offers investors a single access point to multiple global resource projects and the opportunity for investors to spread exposure," David Hutchins of RDP Fund Management LLP said in a statement.
"We are an experienced management team with extensive knowledge of the sector, which we believe allows us to identify highly prospective opportunities. We look forward to updating the market with the performance of our portfolio," Hutchins added.
The trust enables investors to spread their exposure across multiple global resource projects through a single access point.
Hutchins, joined by Kjeld Thygesen, were involved with the listing of he Resources Investment Trust PLC, a specialist investment trust, on the official list in January 2002. Its objective was to generate capital appreciation in the medium to longer term through investing in undervalued companies in the natural resource sector.
Beaumont Cornish Ltd advised on the admission.
By Samuel Agini; [email protected]; @samuelagini
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