for anyone of those who have been listening to my posts about GIR, you heard it from me first that they will be spinning off their zinc assets into a dedicated ZINC exploration company.
Today the company's announcement has proved that I am not one of those random posters trying to spike up the share prices for my own benefit, but rather, I try to inform you HC readers of potential plays that are out there that will make you money.
The ZINC spin-off is likely to list at 20cents, and will be capped around $8m. The bulk of this will go to GIRALIA shareholders through the form of an in-specie distribution - which is a massive money spinner.
The remaining capital which will go out on the market under the IPO float, will also be soaked up by GIR shareholders as a priority entitlement.
If history is any guide, expect about 60% to 80% of the available capital on offer to the "public" to be offered to GIR shareholders as a priority, before the general public is able to get their hands on this.
GIR has a very, very, very, good track record of spin-offs. Look at the price action of RHI, PMH, and UTO as examples. All of these spin-offs were done at very low market cap rates to provide MAXIMUM BENEFIT for shareholders.
If ZINC continues is great run up, which I expect that it will at least until the 1Q of 2007, then this ZINC float will be done at 20cents, and is likely to list at about the 40 cent area.
I have been touting GIR as a ZINC play on HC for quite a while, but its most underrated assets is the Lake Frome URANIUM project with Heathgate resources.
I implore HC readers to do your own research and look closely into this stock.
GIR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
