South Boulder Mines provides update on Eritrean Government negotiations
Monday, November 05, 2012 by Proactive Investors
<
http://www.proactiveinvestors.com.au/about_us>
South Boulder Mines provides update on Eritrean Government negotiations
<
http://www.proactiveinvestors.com.au/companies/overview/1142/South+Boulder+
Mines> South Boulder Mines (
<
http://www.proactiveinvestors.com.au/companies/sponsors_landing/1142/south-
boulder-mines-1142.html> ASX: STB) has provided an update on negotiations
with the Eritrean Government regarding its participation interest in the
Colluli Potash Project.
In March 2012, South Boulder provided the Eritrean National Mining
Corporation (ENAMCO) with a proposal for ENAMCO to acquire a 30% paid
participating interest in the Colluli Potash Project (in addition to
ENAMCO's right to a free-carried 10% interest).
During the course of the negotiations and the ongoing development of the
Colluli Potash Project, it became apparent to both the Eritrean Ministry of
Energy and Mines (MOEM) and South Boulder that Colluli is a strategic and
significant asset.
As a consequence, South Boulder has agreed to submit an alternative proposal
for ENAMCO to participate in the Colluli Potash Project by way of a 50/50
profit share, where South Boulder would pay 100% of the development costs.
The profit share negotiations need to address a range of matters, with a
keen focus on potential financing strategies. In this regard, both the MOEM
and South Boulder intend to work together in good faith to determine the
appropriate structure and commercial arrangements to develop the Colluli
asset.
In discussions MOEM has made it clear that it fully supports the development
of the Colluli Potash Project by South Boulder and is keen to conclude
negotiations to enable licensing and development to proceed in a timely and
expeditious manner.
Received on Mon Nov 05 2012 - 14:41:28 EST
