GIRALIA Resources NL is the owner of one of the biggest...

GIRALIA Resources NL is the owner of one of the biggest exploration land banks you are ever likely to see for a company of its size, with its Snake Well gold property in Western Australia the most advanced of the bunch.

While Snake Well moves through the prefeasibility study stage, Giralia Resources has turned its attention to extracting value from the rest of the land bank.

And shareholders couldn't be happier as, under the first deal, they are to get an in-specie distribution of 40 million shares in a revitalised and redirected Pacific Magnesium Corporation.

Giralia's land bank also includes iron-ore and uranium interests that could be bundled up in a similar way, raising the prospect that for each piece of Giralia paper, shareholders could end up owning four pieces in well-funded and project-specific explorers (Giralia, PacMag, iron ore and uranium).

A former magnesium hopeful, PacMag is to acquire a package of four copper-gold projects from Giralia's land bank by a combination of outright purchase and joint venture.

The package includes the Ann Mason porphyry-style copper deposit, estimated in the 1970s to contain around 4.4 billion pounds of copper, and an option to earn an initial 51 per cent of Giralia's Blue Rose copper-gold prospect in South Australia.

The consideration is 50 million PacMag shares after a 1-for-12 consolidation. Giralia shareholders get 40 million of those (one PacMag share for each 3.4 Giralia shares held) while Giralia keeps the rest, giving it an 11 per cent PacMag stake.

Rounding out the picture is the appointment of Mick Clifford as the new PacMag director and a planned capital raising by PacMag of $3 to $5 million. Clifford was formerly regional exploration manager Australia for AngloGoldAshanti, making him some catch in an industry running short of know-how.

Giralia will also take board control, leaving only Emmanuel Althaus to represent existing PacMag shareholders, who end up with about 21 per cent of the action. Better that than 100 per cent of some no-hope magnesium metal dreams.