BlackRock World Mining Trust manager Evy Hambro added what he believes to be the first ever royalty company purchased by an investment trust last month, when he snapped up a 2% revenue-related royalty stream in London Mining (LOND.L).

The £70 million deal will allow Hambro's trust - which features in Citywire Selection and has gross assets of £1.3 billion - to receive quarterly payments from the income generated by iron ore sales from the company's Marampa iron ore mine in Sierra Leone. The deal was achieved with increased gearing, and Hambro also sold more of his shares in iron ore holdings.

David Fuller's view BRWM (weekly & daily) is a good way to participate in the next cyclical recovery in mining shares. This has been delayed by the global economic slowdown. The sector is cheap but investors may remain wary until mainland China's lagging stock market (weekly & daily) begins to perform (see also Tuesday's mention of the edginess in China's latest actions).