Giralia will hold 40 million Shares in Zinc Co Australia Limited upon quotation on ASX. At a shareholder meeting to be held on or about July 2007, Giralia will seek shareholder approval to distribute approximately 32 million of the 40 million Zinc Co Australia Limited Shares to its shareholders on a pro-rata basis. The record date for the in-specie distribution will be 5 business days after shareholder approval is obtained. Giralia intends to undertake the distribution in-specie of the approximately 32 million Shares to its shareholders within 2 months after the Zinc Co Australia Limited Shares commence quotation on the ASX.
Pro-rata option issue
Approximately 3 months after the completion of the in-specie distribution of the Shares in Zinc Co Australia Limited to Giralia shareholders, Zinc Co Australia Limited intends to conduct a pro-rata issue of options to its Shareholders on the basis of one option for every two Shares held at the relevant date. The options will be issued at a price of 1 cent each, exercisable at $0.25 each on or before 30 November 2009. The options will otherwise be on terms and conditions standard for options in a listed company.
ASX ANNOUNCEMENT • Zinc IPO –Zinc Co Australia Limited (ASX –"ZNC"); Prospectus lodged • Priority offer for qualifying Giralia shareholders of 80% of IPO • Subsequent in-specie distribution of ZNC shares to Giralia shareholders The Directors of Giralia Resources NL ("Giralia") are pleased to advise that the Prospectus for the initial public offer ("IPO") of Zinc Co Australia Limited was lodged on 3 April 2006 with ASIC. Zinc Co Australia Limited is seeking to raise up to $5 million before costs through the issue of 25 million shares at 20 cents each. Applications under the prospectus will open on 16 April 2006. The offer is not underwritten. Zinc Co Australia Limited is a dedicated zinc exploration company formed as a spin off from Giralia, controlling 5 zinc projects in Western Australia. All of the project areas contain known zinc mineralisation discovered and partly explored prior to the severe downturn in zinc prices in the late 1990's. In the last 3 years the zinc price has increased from under US $800 per tonne to US $4,400 per tonne in January 2007, driven by demand for galvanised steel for construction. The Board of Directors of Zinc Co Australia Limited will comprise Gary Comb, current CEO of zinc miner Jabiru Metals Limited, as Chairman, and Giralia Directors Stan Macdonald and Mike Joyce. Experienced base metals geologist Tony Hespe has been appointed as General Manager. Giralia will retain an approximately 12.2% interest in Zinc Co Australia Limited following listing and the completion (subject to shareholder approval) of a planned subsequent in-specie distribution. Priority Application Rights Giralia shareholders holding at least 10,000 Giralia shares and registered at 5 pm WST on the Priority Application Date of 6 April 2007 will have a priority allocation to subscribe for a pool of up to 20 million Shares (80%) of the Offer set aside as a Priority Offer for Giralia Shareholders. Shareholders who acquire shares in Giralia which are not registered as at 5 pm WST on 6 April 2007 are not entitled to participate in the Priority Offer. If you have any questions in this regard, please contact your broker or other advisor. Entitlements under the Priority Offer will be determined by allocating each qualifying Giralia Shareholder a minimum entitlement of 10,000 Zinc Co Australia Limited Shares ($2,000), plus a further entitlement derived from the balance of the 20 million Zinc Co Australia Limited Shares on a pro-rata basis to the number of shares held in Giralia. Giralia shareholders not eligible for the Priority Offer can apply through the Public Offer of 5 million fully paid ordinary Shares in Zinc Co Australia Limited. Giralia shareholders applying in this manner will be treated in the same way as other applicants under the Public Offer. PO Box 1665, West Perth WA 6872 ! Level 2, 33 Ord Street, West Perth WA 6005 Tel: (08) 9481 4440 ! Fax: (08) 9321 0070 ! Email: [email protected] ! Web: www.giralia.com.au - 2 - Distribution in-specie Giralia will hold 40 million Shares in Zinc Co Australia Limited upon quotation on ASX. At a shareholder meeting to be held on or about July 2007, Giralia will seek shareholder approval to distribute approximately 32 million of the 40 million Zinc Co Australia Limited Shares to its shareholders on a pro-rata basis. The record date for the in-specie distribution will be 5 business days after shareholder approval is obtained. Giralia intends to undertake the distribution in-specie of the approximately 32 million Shares to its shareholders within 2 months after the Zinc Co Australia Limited Shares commence quotation on the ASX. Pro-rata option issue Approximately 3 months after the completion of the in-specie distribution of the Shares in Zinc Co Australia Limited to Giralia shareholders, Zinc Co Australia Limited intends to conduct a pro-rata issue of options to its Shareholders on the basis of one option for every two Shares held at the relevant date. The options will be issued at a price of 1 cent each, exercisable at $0.25 each on or before 30 November 2009. The options will otherwise be on terms and conditions standard for options in a listed company. Anticipated timetable The anticipated timetable for the listing of Zinc Co Australia Limited is as follows: Lodgement of prospectus by Zinc Co Australia Limited with ASIC 3 April 2007 Date for determining priority application rights for Giralia shareholders (Priority Application Date) 6 April 2007 (5pm WST) Offer opening date 16 April 2007 Closing date (priority offer to Giralia shareholders) 4 May 2007 Closing date of prospectus (public offer) 19 May 2007 Anticipated listing date of Zinc Co Australia Limited on ASX 1 June 2007 These dates are indicative only and may be subject to change. A copy of the prospectus will be sent to all Giralia shareholders, and the prospectus is also available on Zinc Co Australia Limited's website at www.zincco.com.au. R M Joyce 4 April 2007 Director Perth, WA The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by R M Joyce, who is a Member of the Australasian Institute of Mining and Metallurgy. R M Joyce has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. R M Joyce consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ZNC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
