new zinc spin off: priority to ipo, page-5

hi pruner,

the zinc spin-off for GIR is not likely to happen until March of next year... given that there is so much regulation associated with them...

the company hasn't announced a record date, but just its intention to spin off the zinc company, so you will still have time to get in... HOWEVER,

what is likely to happen is that the share price will be pushed up for another day on the back of everyone jumping in.... after this, you are likely to see the share price drift back as the market 'forgets' yesterday's announcement - so this will give you the opportunity to get some stock at a better price...

to play it safe though, you may want to consider buying a minimum of 2,000 GIR shares as this is likely to get you a priority entitlement allocation on the zinc float... if the share price does drift back, then you can load up on some more to get a bigger slice of the in-specie distribution...

as I've said in some posts before, I've been watching GIR for many years, as my brother has held stock in the company since the late 1990's...

and to let the cat out of the bag, the company does consider that it has enough land out there to warrant 2 more spin-offs. Another Iron-Ore float, and a separately listed and dedicated Nickel company...

The thing with GIR is that it acquired an absolute cr@p load of land in the 90's when no-one was interested in resources... Now that metal prices are where they are, many of the deposits they have acquired may be economic to mine, hence all the interest in late...

The company has that much land, that it simply does not have the cash flow to explore it all... and this is the very reason why they are 'spinning-out' so many of their assets... so that shareholders can still have ownership of all this land, but the spin-offs raise funds to allow exploration...

As for GIR, the company is doing a massive amount of work on its Snake Well gold project, which looks like it may go into production in the next 12 to 18 months, and this will produce the company with cash flow...

However, I am more excited about its Lake Frome uranium JV with Heathgate, which definitely is worth looking into