re: Ann: HLX: Helix and Giralia to Spin out ... Giralia, Helix...

re: Ann: HLX: Helix and Giralia to Spin out ... Giralia, Helix to launch gold play

Kate Haycock
Thursday, 15 October 2009

IRON ore explorers Giralia Resources and Helix Resources are teaming up to spin off their Gascoyne region gold assets in Western Australia.

The new company, Gascoyne Resources, will list on the Australian Securities Exchange after a $6 million initial public offering.

Helix will spin out its Glenburgh project into the new company, which includes a resource of 2.4 million tonnes at 2.6 grams per tonne for 203,000 ounces.

Giralia’s assets include the Mt James project, where previous work has included reverse circulation drilling results of 2m at 3.66gpt gold, and the Bustler Well and Bassit Bore prospects.

Both companies will give their shareholders the chance to purchase 7.5 million priority shares in the company.

Giralia has agreed to underwrite the priority entitlement part of the listing for $3 million, while Patersons Securities will be underwriting $3 million of the IPO.

Additionally, both companies will distribute their shares in-specie, leaving the two with an 11% combined stake in Gascoyne after listing.

A board for the new company is currently being put together.

Shares in Giralia were last traded at $1.16, up 3c, while Helix was last at 12c, up half a cent.