02/07/2008 - 14:49

Giralia nets $18.5m in Red Hill sale

02/07/2008 - 14:49

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West Perth-based Giralia Resources NL will soon have a healthy bank balance of $77 million after it finalised the sale of its remaining interest in fellow Perth company Red Hill Iron Ltd.

West Perth-based Giralia Resources NL will soon have a healthy bank balance of $77 million after it finalised the sale of its remaining interest in fellow Perth company Red Hill Iron Ltd.

Directors in Giralia said today that the company had exercised its one-off put option to sell its remaining 2.6 million shares in Red Hill Iron at $7 apiece as set out under an agreement dating back to March with AMCI Investments and Australian Inter Coal Holdings.

Under that agreement, Giralia agreed to sell its 16.8 per cent interest in Red Hill.

Giralia said today the proceeds of the sale of the second tranche of RHI shares will be around $18.5 million. The first tranche consisted of 4 million RHI shares also priced at $7 each.

"Following the completion of these transactions, Giralia will have approximately $77 million in cash," Giralia said.

"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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