Giralia's Zinc Co to raise $5m for project exploration

Applications under the prospectus of West Perth-based Giralia Resources NL's spin-off Zinc Co Australia Ltd opened today, with the company seeking to raise up to $5 million for exploration of its projects in its initial public offer.

The company, which will issue 25 million new shares at 20 cents each, controls five zinc projects in Western Australia.

Giralia will hold 40 million shares in Zinc Co upon quotation, but will seek approval to distrubute 32 million of the shares to its shareholders on a pro-rata basis at a shareholder meeting in July.

The offer contained a priority offer for Giralia shareholders for 80 per cent of the total IPO, which opened on April 3.

Following the in-specie distribution, Giralia will retain an interest in Zinc Co of about 12.2 per cent.

The company has also flagged plans to conduct a pro-rata options issue on a basis of one option for every two shares held, to be valued at one cent each but exerciseable at 25 cents on ore before November 30 2009.

The current chief executive of zinc miner Jabiru Metals NL, Gary Comb, will serve as chairman of the company, with geologist Tony Hespe serving as general manager. They will be joined on the board by Giralia directors Stan Macdonald and Mike Joyce. Bruce Acutt will serve as company secretary.

Zinc Co has retained Mack & Co as auditor and investigating accountant, with Pullinger Readhead Lucas serving as solicitors to the company.

The minimum subscription for the offer is $3 million, and oversubscriptions will not be accepted.

The priority offer will close on May 4, with the public offer closing on May 19.