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South Boulder Mines' Shareholders To Vote On Non-Potash Assets Demerger

South Boulder Mines (ASX: STB) will be seeking shareholder approval of the proposed demerger of its non-potash assets at its Annual General Meeting today.

The company is planning to spin off its gold and base metals assets into a separately listed ASX vehicle, to be named Duketon Mining Limited.

If shareholders approve the demerger, South Boulder will then move to make a final decision to proceed with the demerger.

Shareholders in South Boulder will gain shares in Duketon through an in specie distribution of 100% of the shares in Duketon to shareholders of South Boulder on a one for four basis.

This will involve about 31 million Duketon shares to be issued.

Duketon will own 100% of the gold and base metals rights in the Duketon Project, located within the well-known Achaean Duketon Greenstone Belt, which also contains Regis Resources' (ASX: RRL) Moolart Well Gold Project.

Key prospects are the Terminator Gold Prospect and Thomson's Bore Gold Prospect with numerous prospective targets to follow up on in the future.

Duketon will also hold a 100% interest in the Lake Lefroy and Cutters projects as well as minority stakes in the Cardabia, Pilgangoora and Georgina Basin projects

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