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  • South Boulder Mines Shares Catch An Uplift 0 comments
    Aug 5, 2014 10:02 PM

    South Boulder Mines' (ASX:STB) shares have been re-rated climbing to an intra-day high of $0.27 yesterday, a level not seen in close to a year.

    The value is around 70% higher than where the company was trading just last month.

    South Boulder and the Eritrean National Mining Company (ENAMCO) are equal shareholders of the Colluli Mining Share Company (CMSC) which will develop the Colluli Potash project in Eritrea.

    The company recently attracted a A$1.8 million investment at a premium from the Hong Kong based Kam Lung Investment Development Company (KLID).

    Earlier in the week South Boulder appointed GED to conduct geotechnical and hydro-geological drilling at its Colluli potash deposit in Eritrea, Africa.

    GED will also conduct twinning of a number of resource holes as part of the transfer of the resource model from Ercosplan to AMC Consultants.

    Mobilisation is expected within two weeks and drilling is to commence within three weeks.

    KLID investment

    The importance of the placement also delivers South Boulder a strategic investor who is on the lookout for a binding offtake agreement for Colluli.

    KLID has the option to buy an additional 8 million shares, exercisable at $0.35 cents, upon securing a binding offtake deal for potassium sulphate on commercial terms acceptable to the CMSC board.

    The agreement is in effect for a period of 6 months from the date that the current Pre-Feasibility results are released to the market.

    The placement injects more funds into the company and adds to the $9 million cash balance at the end of June 2014, and will support the completion of the Pre-Feasibility Study.

    Colluli, one of the world's shallowest potash deposits

    Colluli is located just 65 kilometres from the coast and covers 500 square kilometres, and boasts a JORC Mineral Resource Estimate of 1.08 billion tonnes at 18% potassium chloride for 194Mt of contained potash.

    Project upside exists in higher production capacity and market development for other contained products, and Engineering Scoping Study results were favourable, proving that an economic 2Mt per annum potash mine can be built at low cost.

    South Boulder is working steadily towards developing the world's first, modern, open pit potash mine.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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