South Boulder to raise $6m
UPDATE 2.50pm: Shares in South Boulder Mines closed lower after the company announced a discounted capital raising to generate up to $6 million.
The company announced this morning it would issue 10.974 million new shares at 25 cents in a placement to Hong Kong and London-based investors to raise $2.74 million.
It separately announced a one-for-12, underwritten rights issue to raise a further $3.35 million. The rights issue would also be priced at 25 cents.
South Boulder said the funds would be used to complete the definitive feasibility study for its Colluli potash project in Eritrea.
The funds would also build in-house capability to support the development of the project, advance funding discussions and provide working capital.
South Boulder Mines managing director Paul Donaldson said the capital raising would provide sufficient funds to not only deliver a high-quality definitive feasibility study later this year, but advance the development path towards production in the areas of processing technical, marketing and project funding.
South Boulder is in a 50/50 partnership with the Eritrean Government for Colluli.
Shares in the company were up two cents, or 6.35 per cent, to 33.5 cents in early trade after emerging from a trading halt. But the shares then reversed to close down 1.5 cents, or 4.76 per cent, at 30 cents.
