The share placement announced today is quite significant.
Today, the company has basically announced that its immediate interest will be focussed away from the Snake Well gold mine, and rather will be placed into seriously advancing the company’s iron ore tenements.
This, I think, is a good strategic decision, as the Iron Ore market at the moment is red hot, with enormous interest being shown by the Chinese.
The project holdings also are real, quality tenements. An aggressive exploration program as indicated in the announcement is fantastic news.
Red Hill Iron is a great example of what aggressive exploration can do to a share price. If the Giralia board puts in the same amount of effort into advancing their own iron ore tenements as RHI has done, then I feel very confident that we will see great results.
From what I read into this however, is that the company will NOT be doing any further spin offs in the immediate future. They had the tenements to justify a separate nickel spin off (still not entirely out of the question), or a second iron ore spin off. I was favoring a second iron spin off after discussing this at length with management, but it is great to see the company deciding to do it themselves.
Very excited about the prospectus of the company now. Very excited.
GIR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
