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South Boulder Mines in pre open pending capital raising announcement

South Boulder Mines (ASX: STB) has been granted a trading halt by the ASX today pending the release of an announcement relating to a major capital raising.

While the company did not say where the money raised will be allocated, South Boulder Mines recently completed a Scoping Study for its Colluli Potash Deposit in Eritrea which returned favourable economics, including a net present value of US$1.33 billion (12% discount rate), with an internal rate of return of 40.6%.

With only a portion of the resource used in the model, South Boulder said that it considers the mine life upside of the project to be immense and likely to be in excess of 50 years once details of Sulphate of Potash (NYSEARCA:SOP) and K-Mg sulphate production is included.

The trading halt will be in effect until an announcement is made to the market or no later than the start of trading on Wednesday, December 7.