Investors into mining fund Global Resources Investment Trust (LON:GRIT) have an opportunity to buy the shares at around a 50% discount to the group's net asset value (NAV), points out research house Quoted Data.
Shares in GRIT are currently changing hands at around 33p, while the fund's NAV is 62p.
GRIT has over 40 junior mining stocks in its portfolio, spanning a range of commodities and geographies. The trust's idea is relatively simple: Firms that are strapped for cash and unloved by investors, swap stakes in their business for shares in GRIT then sell the GRIT shares to provide much needed capital to grow operations.
Assuming the share prices rise, GRIT then cashes out.
A few months into the life of GRIT and the net asset value has fallen by 37% and its shares have fallen much faster, notes the research house
But it also highlighted the journey made by Resources Investment Trust, another fund that was established by the same GRIT team.
Shares in that fund were issued at 100p in January 2002 and fell to the low 40s initially before recovering. In all, £15mln was invested in the fund and £54.5mln had been returned to shareholders by the time it was liquidated in 2008.
Among GRIT's portfolio are Arakan Resources (GXG:ARK), where it has a 19% stake, and Alhambra Resources, where it owns 9.4%.