Im not sure if this article has already been posted.I'd be...

Im not sure if this article has already been posted.

I'd be interested to know at what price fellow members think U3O8 will honestly open at?

Cheers

nUmbaz



Giralia spinning out uranium

Ben Sharples
Wednesday, March 15, 2006

GIRALIA Resources' long-awaited uranium spin-off U3O8 is pegged to hit the boards around May following its $A5 million initial public offer, with 80% of the offer set aside for Giralia shareholders.



The uranium offering was first announced in October but Giralia director Michael Joyce told MiningNews.net the company had been putting a bit of pressure on shareholders lately with a series of spin-offs, which include Pacific Magnesium and Red Hill Iron.

"We didn't want to overlap all those capital raising periods," Joyce said. "We thought we'd hold this one back slightly just to give everyone a chance to catch their breath."

U3O8's portfolio will be made up of 10 projects over three states ? Western Australia, Queensland and South Australia.

"The early focus will be on establishing resources at a couple of the calcrete-hosted deposits in Western Australia, there are several of them that have estimates that are not JORC compliant, but they're quite big systems," Joyce said.

"We will be doing some infill and confirmatory drilling on those so we can get some resource estimates to the market early."

Joyce said the Dawson-Hinkler Well project near Wiluna and the Wabli Creek project in the Gascoyne would be the immediate focus.

According to Giralia, the Dawson-Hinkler Well has around 20km of strike of known uranium mineralisation in a calcrete-hosted carnotite deposit and is located around 40km north of the Yeelirrie deposit.

However, two joint ventures are absent from the U3O8 offer ? a 25% interest in the Lake Frome project in South Australia with producer Heathgate Resources, and a 51% stake in the Anglo project in WA involving Mines and Resource Australia (MRA).

Joyce said the projects were held back in Giralia because they are fully funded by their JV partners and the company didn't want to confront pre-emptive right issues.

Making up the board will be corporate lawyer Philip Lewis as chairman, current Giralia director Stan Macdonald and the current head of MRA Stephen Mann.

Giralia will issue around 25 million shares at 20c each to raise the capital. Giralia is expected to retain around a 12.2% stake in U3O8.

Other companies that have recently opted for the spin-off route include Agincourt (Nova Energy), Jindalee Resources (Energy Metals), Resolute Mining (Valhalla Uranium), Goldstream Mining (Uranex), and Oxiana and Minotaur Exploration (Toro Energy).

Shares in Giralia shed 4c (12.1%) during morning trade to 29c.