South Boulder Mines (ASX: STB) has been granted a trading halt by the ASX today pending the release of a capital raising announcement, with the company's shares placed in pre-open.
South Boulder has not yet indicated where the potential capital injection will be allocated, but the company has recently been delivering a strong of positive news flow from the Colluli Project in Eritrea.
Earlier in the month South Boulder discovered more high grade near surface potash, which has the potential to underpin a resource upgrade.
Colluli currently hosts a JORC Resource of 1.08 billion tonnes at 18% KCl for 194 million tonnes of potash.
The project has a near term exploration target of 1.25-1.75 billion tonnes, with a Feasibility Study underway targeting 1Mtpa production by 2016.
The halt will last until the earlier of an announcement being made to the market, or the opening or trade on Tuesday 26 June.
Received on Fri Jun 22 2012 - 08:53:47 EDT