South Boulder raises $9.5m for Colluli
UPDATE 2.55pm: South Boulder Mines says it plans to raise $9.5 million through a share placement to fund completion of a definitive feasibility study for its Colluli Potash Project in Eritrea.
The placement, priced at 95 cents a share, will involve a $5 million placement to clients of Sprott Private Wealth and a $4.5 million placement to private equity group Meridian Capital International Fund.
South Boulder said the placement would be accompanied by a free one-for-two listed option exercisable at $1.50 within two years of issue.
The company said the option issue would have the potential to raise up to a further $7.9 million with an application for the options to be listed.
"In addition to completing the definitive feasibility study in 2013, the funds raised will be used to commence early works to upgrade road access, continue exploration drilling and provide working capital," the company said in a statement.
The A$4.5 million placement is expected to settle on June 29 and the balance on or before July 17.
South Boulder shares closed down 13 cents, or 13 per cent, at 87 cents.
Received on Tue Jun 26 2012 - 12:07:55 EDT