woosh, page-15

re: heathgate to buy out its 25 pc stake the terrific thing about Giralia is that it acquied the bulk of its tenments when resource prices were at historically low levels... therefore, it cannot be criticised for jumping on the resource band wagon as it has been there all along...

back in the mid 1990's, the company survived only by conducting little exploration work, so as not to waste cash flow and avoid it from takingon debt....

the fact that GIR survived such a tough time is testament to the quality of its management, and the belief they had in the tenements they acquired...

the zinc tenements especially are extremely promising, and were acquired by the MD in the 1990's, as he had a special liking to zinc exploration....

the result will be an excellent quality zinc spin off with a tight capital strucutre, that will see GIR shareholders not only benefit via the in specie distribution, but also via the IPO where I would expect a 20cent listing to open around 40cents PLUS given today's hot zinc environment...

the form of the distribution is likely to be about 3 for 1, so the 40cent stock is adding about 13cents to the current share price - and that does not take into account the probable 2 bagger shareholders will get off the IPO... remember, the more GIR you have, the more in specie you will receive, and the more priority stock you will receive in the IPO...

My bet is that a second iron ore spin off is on the cards, and will be carried out in the second half of this year....

The company is assessing the spin off of its Nickel tenements (Daltons, Kathleen Valley etc...) and that too is likely to see the advanced Dalton's project progress even further...

expecting some news on the zinc spin off soon, and the prospectus is on track to be lodged in February...

cheers,

PT