Australian (ASX) Stock Market Forum

GIR - Giralia Resources

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kennas said:
Wouldn't they be in a halt as well though? Perhaps a foreign company wants to take a stake. Chinese might like their iron assets which seem to be developing nicely.
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mmm noone else is in a trading halt. "pending finalisation of a transaction"

Perhaps the Easter Bunny is getting tired of his pay and wants to trade chocolate for iron ore. ;)
 
I bought into this one several months ago, at about the price it is now! Should have unloaded it when it was well up. The broker likes it. They seem to have a lot of projects in the pipeline and a solid track record. I will hold for now.
 
AMCI taking a strategic stake.

26 March 2008

GIRALIA SECURES AMCI CAPITAL AS A STRATEGIC SHAREHOLDER SALE OF GIRALIA'S SHAREHOLDING IN RED HILL IRON TO AMCI INVESTMENTS AND FIRST RESERVE CORPORATION

Giralia Resources NL (ASX-"GIR") and American Metals & Coal International Inc. ("AMCI") have reached agreement on two separate major transactions that will result in the injection of a minimum of approximately $70 million into Giralia, through the sale of Giralia's 16.8% stake in Red Hill Iron Limited at a significant premium to market, and a share placement, again at a significant premium.

The Directors of Giralia Resources NL ("Giralia") are pleased to announce today that it has:

• agreed to sell all of the shares it owns in Red Hill Iron Limited ("Red Hill Iron") to AMCI Investments Pty Ltd ("AMCI Investments") and First Reserve ("First Reserve"); and

• secured the strategic support of AMCI Capital LP ("AMCI Capital") as its new major shareholder via a 9.9% share placement.

Following the transactions, Giralia will have approximately $77 million in cash. The funds raised will be used principally to accelerate exploration and development of Giralia's extensive project portfolio, particularly the Company's wholly owned iron ore assets.
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Hmmm, sells it's iron ore investment, for....development of iron ore. LOL

Good deal for Giralia perhaps, if it's spent well.

How does this effect the AQA/AMCI/RHI arrangement now?
 
kennas said:
AMCI taking a strategic stake.



Hmmm, sells it's iron ore investment, for....development of iron ore. LOL

Good deal for Giralia perhaps, if it's spent well.

How does this effect the AQA/AMCI/RHI arrangement now?
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AMCI wanting a bigger slice of the pie it seems on Red Hill Iron, and from this media report, very impressed by Western Creek recent drill results to also want in on Giralia.

http://www.businessspectator.com.au/bs.nsf/Article/Deal-me-in-D48ZM?

Price for RHI $3.94/tonne of DSO based on $7 share price. Personally I think AMCI got a good deal as more RHI drilling to come in yet to upgrade that resource.

Interesting times ahead for this little spider web!
 
The Australian yesterday - Tim Boreham rates Giralia a Speculative Buy. Interesting they have turned away a string of buyers in the past. I had heard this via the grapevine, but could not substantiate.

Giralia Resources (GIR) $1.10

BHP and Rio shares may have come off the boil, but Giralia's $70 million jackpot shows that enthusiasm continues unbated in the junior iron ore sector.

A few weeks ago, the WA mid-west hopeful got a knock on the door from the private-equity venture AMCI, co-founded by ex-BHP heavy Mike Salamon.

The AMCI bods offered to take Giralia's 16.8 per cent stake in Red Hill Iron off its hands for $7 apiece, a whopping 35 per cent premium to the prevailing price.

In the process, AMCI was also sold on Giralia's own prospects, which include its stranded Earaheedy dirt near Newman, a potential 1 billion tonne deposit.

The upshot is that AMCI agreed to take a 9.9 per cent, $22million Giralia placement at $1.30 a share, also a 35 per cent premium.

Criterion understands the approach wasn't the first, with Giralia turning away a string of buyers in the past. In the current climate, though, one does not spurn a stranger with a fistful of cash. "We didn't intend to do a capital raising but this was an offer too good to refuse," Giralia chief Mike Joyce says.

The two deals leave Giralia with cash of $77 million, which will be used to expedite drilling and prove up reserves across its five fully owned projects.

The most advanced - the Beebyn project in the mid-west - adjoins the Weld Range deposits held by the warring Midwest and Sinosteel.

An oddity of Giralia is that it holds stakes in seven other spin-off resource plays - six after the Red Hill sale - worth about $20million. It also holds useful uranium ground in yellowcake-friendly SA.

Joyce was "underwhelmed" by yesterday's market reaction, despite Giralia's share price spiking 14c, or 14.5 per cent.

We're sure investors eventually will appreciate the virtues of the deal and ascribe a speculative buy."""
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A bit of extra info on the iron ore front with the UBS presentation out today. Some bits and pieces below..lots of info coming up soon and good to see an initial target of 50 - 100 mill tonne of DSO on Western Creek. As we now have plenty of money in the bank, no more fundraising for some time which is great for holders.

Beebyn–Weld Range segment; build on preliminary iron ore resource
• Beebynganna Hills iron ore; initial drilling April, initial resource?
• Earaheedy iron ore; substantial follow up drilling to test hematite hills
• Western Ck iron ore; initial drilling February, initial resource June?
• Mc Phee Ck iron ore; resource drilling April
• Yerecoin iron ore; drilling and detailed metallurgy April-May
• Partner funded uranium exploration at Lake Frome
• Snake Well gold project; development studies and regional drilling,
Daltons nickel JV; EM follow up
• Partner funded copper, gold, and nickel exploration at Blue Rose,
Cookes Creek, Yuinmery, Ashburton, Kathleen Valley, Mt James JVs.
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Initial ‘Exploration Target’ for Giralia’s 100% owned Western Creek project;
50-100 million tonnes of DSO
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aaagh, just more of the same......plenty of iron ore in those hills! Didn't even know about this deposit! GIR 75%

A further 5 rock chip samples were taken from potential iron ore targets associated with extensive outcrops of prospective banded iron formation.

One zone of high grade hematite iron ore was identified with grade 62.2%Fe from an outcrop of massive hematite extending for approximately 200 metres by 200 metres.

The Daltons JV tenements lie 20 to 30 kilometres east of BHP and FMG rail lines. Competitor activity in the area is increasing, with Atlas Iron Limited announcing an initial resource of 8.6 million tonnes @ 57.5% Fe from its Trigg deposit around 25 kilometres to the north of the JV area.

The Daltons JV tenements host around 30 strike kilometers of banded iron formations mapped by the GSWA as extensions to the units that host iron ore deposits and prospects to the north.
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Just hoping someone very big might wake up to GIR's huge potential one day, instead of just me talking to myself on some share forum.....
 
Hey grace,

fwiw i follow these guys on my watchlist but dont have the capital to buy in.

Check my signature ;)
 
Well nice quarterly out today, plenty of cash, plenty of drilling results to come in soon. Seems like the sellers are starting to dry up. I see a lot of sell orders have actually been removed today. Perhaps they like the future prospects???

Here is some more detail on one of their iron ore prospects...

Earaheedy Iron Ore Project (Giralia 100%)

Giralia controls a 570 square kilometre area in the Miss Fairbairn Hills area of the northern Earaheedy Basin, 100 kilometres north of Wiluna, and 200 kilometres south of Newman in Western Australia.

Giralia was the early mover in this new, high potential iron ore province which is thought to be the second largest accumulation of iron formations (the host to bedded iron ore deposits) in Australia, reported to contain in total over 500strike kilometres of thick (up to 500 metres) iron formations.

The Company's 100% owned Earaheedy tenements cover 130 strike kilometres of the most iron-ore prospective areas defined by past exploration work in the late 1970s, principally by Amax Exploration (Australia) Inc. ("Amax"), which resulted in the location of widespread areas of hematite enrichment with surface grades up to 66% Fe, including zones described by Amax as up to 75 metres (true thickness) grading 62% Fe.

A small program of shallow drilling by Amax (only 652 metres of drilling in total, average hole depth 23 metres) returned intersections of 22 metres @ 56.5% Fe including 14 metres @ 59.3% Fe, and 4 metres (to end of hole) @ 60.4% Fe, in the Miss Fairbairn Hills, now wholly on Giralia's tenements.

Importantly the Earaheedy iron formations are shallowly dipping, providing the opportunity for large tonnages, and major low angle fault repetition interpreted from the Company's newly flown 11,000 line kilometre detailed aeromagnetic survey provides numerous potential targets for structurally controlled hematite enrichment.

Giralia's DSO Exploration Target in the Miss Fairbairn Hills is very large (+1 billion tonnes) within the 130 strike kilometres of iron formation on the Company's tenements.

Giralia's mapping and rock sampling has confirmed high-grade outcropping iron ore mineralisation. In the best zone defined to date an open ended exposed cumulative thickness of approximately 20 metres of hematite mineralisation grades 62% Fe, with 0.088% P.

The Company completed an initial drilling program during the previous quarter comprising 45 widely spaced vertical RC drill holes for a total of 2,803 metres at its 100% owned Earaheedy iron ore project. Significant results from the initial program included the recognition of thick zones of iron rich transported gravels flanking hills in the south of the drill traverse. Grades in the gravels reach 57.2% Fe. Testing in the field with trial wet screening (using a ~2mm sieve) provided encouragement, with an upgrade of 14% overall in the +2mm fraction to average 51.2% Fe (with 4 metre composites returning up to 54% Fe).

There is significant potential tonnage of these hematitic gravels in the area and the company believes that it is likely further screening tests using coarser size fractions will further increase iron grades.

Giralia's next drill program, planned for early 2008, will directly target the outcropping zones of massive hematite in the Miss Fairbairn Hills area, and other areas to the south with significant rock chip sample results that have not yet been followed up.
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grace said:
Well nice quarterly out today, plenty of cash, plenty of drilling results to come in soon. Seems like the sellers are starting to dry up. I see a lot of sell orders have actually been removed today. Perhaps they like the future prospects???

Here is some more detail on one of their iron ore prospects...
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I totally agree Grace! It was a good quarterly and plenty of projects on the go that have some quite remarkable resource potentials. I'm a holder and am very much looking forward to where GIR are heading.
We have seen good rises in SP over the last couple of days and a particularly strong performance today (on an ASX ordinary day) with sellers drying up fast. The way i read it is that there is more gains to be made in the short term with buyers outnumbering sellers by an extraordinary 10:1 at present. Seems as though we are currently seeing a re-rating in the SP.
Future looks very bright but DYOR (disclaimer: I am a holder) :D
 
Well, guess what, more DSO at our new deposit at McPhee Creek from surface. What a surprise. Look, there are not many surprises with GIR, they got in early and took up the best bits around the Pilbara and Mid-West.

This deposit is down the road from BCI's deposit so I can see some infrastructure sharing arrangement there such as a shared rail spur to FMG's line. That's my crystal ball effort, so do your own research.

MCPHEE CREEK IRON ORE PROJECT CHANNEL IRON DEPOSIT CONFIRMED

Channel Iron Deposit ("CID") discovery confirmed by resource level RC drilling at Giralia's 100% owned McPhee Creek iron ore project in the Pilbara region of Western Australia. New drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe, 14 metres @ 55.9% Fe, with mineralisation commencing at surface.

Giralia's McPhee Creek tenement lies 50 kilometres north of BC Iron Limited's Bonnie Creek channel iron deposit ("CID"), for which an initial Inferred Resource estimate of 28 million tonnes @ 57.4% Fe was recently released.

On-going exploration will target western extensions to the main mesa, along with another major zone of unexplored CID potential evident as an 8 kilometre long range trending north west through the tenement, and an additional zone of reported hematite enrichment in nearby banded iron formation of the Archaean Gorge Creek Group.
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Man am I kicking myself for not getting onto these guys when they went under $1 again.

Dammit!! :banghead::banghead:
 
prawn_86 said:
Man am I kicking myself for not getting onto these guys when they went under $1 again.
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Me too :( Little jewel this one. :)
Thanks Grace your posts made research easier. Been shifting through the pile of iron ore Juniors trying to take advantage of the potential sector re-rating once the Chinese finalize BHP & Rio's ore prices.
Just wondering though has the company mentioned feasibility studies on any of there digs and which would be the more advanced or logical site for the company to take that first step towards producer
 
nick2fish said:
Me too :( Little jewel this one. :)
Thanks Grace your posts made research easier. Been shifting through the pile of iron ore Juniors trying to take advantage of the potential sector re-rating once the Chinese finalize BHP & Rio's ore prices.
Just wondering though has the company mentioned feasibility studies on any of there digs and which would be the more advanced or logical site for the company to take that first step towards producer
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This Company, I believe will spin off their iron ore projects into new companies, and then take it from there. They have just kissed goodbye to RHI, and this forms the major DSO that AQA is involved in. Once companies have been spun off, this provides opportunity for float funds (priority issue to GIR holders and new money) to next step of final drilling and feasability studies.

In what order??? That's a hard question, but I'd say

1. Possible JV with MIS on the extension at weld range (drilling nearlly complete)

2. Possible JV with MIS or MMX on Beebynganna (drilling starting, but not a large deposit) - rail proposed to doorstep by infrastructure "winner" (MIS or MMX)

3. Float a new company for each of the following possibly in this order

a) Western Ck - 10km from Newman rail line and next door to BHP

b) Earaheedy major deposit (this could be of interest to MIS and MMX given only requires an 80km extension to proposed rail line to Wiluna)

c) McPhee Ck - infrastructure sharing with BCI (north of FMG rail line)

d) other bits and pieces of iron ore too....eg magnetite deposit close to Perth but only 1km from rail line.

These are my thoughts only, and could quite clearly be totally wrong.
 
The mac bank of the mining industry,well maybe :) Thanks for the wrap Grace
Very helpful.... Cheers
 
ChomChom said:
Anybody knows why the announcement had no effect on the SP, it looked promising?!

Even this article in Australian News http://www.theaustralian.news.com.au/story/0,25197,23665869-15023,00.html published yesterday had no effect and the SP has gone down today....?? :cautious:
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My :2twocents on this is that if you look at the climb of the sp of late would seem to me the market has already priced in that result. My feeling that the market is consolidating at this price, before maybe another re-rating.
A difficult company to value.
 
nick2fish said:
A difficult company to value.
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Aint that an understatement. I started trying to do it a few months ago and got to their 5th or 6th project and just gave up. More irons in the fire than an overworked blacksmith in the middle ages. (now that`s a crap analogy :eek:) Been a wicked ride for those on board since Sep last year. Can`t believe I sold at 75 cents last year, and didn`t take up the RHI IPO opportunity. :banghead:
 
Hey Kennas .... If we could use a crystal ball we wouldn't be mucking around with shares... when you could make fast dollars on the horses.

I got in on GIR @1.80 but I don't care the upside is fairly strong on this one(IMO) cause ,as you are well aware ,they a fairly substantial multi site ore exploration portfolio.
My reading suggests Chinese/World demands are going to get more intense
The Big fish are going to eat up the small fish
M/A is the fastest way to beef up resource size, add synergies and maybe avoid bottlenecks by diversifying location.
GIR projects will gain attention and deal terms may shock.
Plus I like how GIR always negotiates a small slice of the pie thus building a handy equity portfolio as they go.
One for the mid to long term, Good Luck :)


my opinions are as good as cask wine
 
GIR has doubled in a month. :banghead:

I wonder if it's a proper rerating, or it's going to go off on it's roller coaster ride again.

The McPhee Creek thing seems to have been part of the impetus.

Channel Iron Deposit ("CID") discovery confirmed by resource level RC drilling at Giralia's 100% owned McPhee Creek iron ore project in the Pilbara region of Western Australia. New drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe, 14 metres @ 55.9% Fe, with mineralisation commencing at surface.
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Not really thick intersections but potentially a long deposit.

Previous iron ore exploration by at McPhee Creek by Amoco Minerals in the early 1980's outlined a substantial CID outcropping as a mesa up to 3.5 kilometres long.
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