Giralia, Helix spin-out gold assets

Perth-based explorers Giralia Resources and Helix Resources will spin-off their Gascoyne gold assets into new company, Gascoyne Resources, which will seek to raise $6 million through an initial public offer.

Shareholders in both Giralia and Helix will each be given priority entitlement of 7.5 million Gascoyne shares in the IPO, which will be underwritten by Giralia for up to $3 million, while Patersons Securities will be lead manager for the other $3 million.

A prospectus for Gascoyne will be lodged shortly, with the company seeking a listing on the Australian Securities Exchange.

The Gascoyne board is currently being assembled.

Should Gascoyne be floated, the combined Giralia-Helix shareholding will be about 11 per cent.

Helix has agreed to divest its Glenburgh project that contains a 203,000 ounce resource, while Giralia will vend the Mt James, Bustler Well and Bassit Bore projects.