Grammer exercised the options at $0.20 each for a total consideration of $200,000.
South Boulder is in the process of spinning off its gold and base metals assets into a separately listed ASX vehicle, to be named Duketon Mining Limited.
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.
South Boulder has also recently completed an Engineering Scoping Study (ESS-2) for its Colluli Potash Project in Eritrea, demonstrating the potential to mine and process the underlying carnallite mineralisation.
Importantly, this could mean an expansion above the initial targeted production level of 1 million tonnes per annum outlined in the Definitive Feasibility Study (NYSE:DFS) under the right economic conditions.
Although it was found that suitable technologies could extract potash from Carnallite mineralisation, South Boulder will retain its focus on its sylvinite project with lower capital needs.
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