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South Boulder Mines Gains New Substantial Shareholder With Initial 5.22% Interest

South Boulder Mines (ASX: STB) continues to grow its substantial shareholder base with the addition of Meridian Capital International Fund to its register with an initial 5.22% stake in the company.

Meridian now holds 6.3 million shares in South Boulder after a series of on-market purchases during May and June.

The private equity group recently agreed to take up all of the recently announced A$9.5 million placement, up from $4.5 million originally, which is expected to give it a 9.2% stake in South Boulder, rising to 12.9% if it exercises all its options.

South Boulder can now focus on the next key elements of developing its Colluli Potash Project, including discussions with potential strategic investors.

Colluli potash could have lower capital costs

In some more positive news for South Boulder, just last week the preliminary Definitive Feasibility Study pointed to the potential for lower capital costs.

All important CAPEX and operating costs could be reduced the study has revealed, becoming more attractive to financiers and paving the way for more rapid development and the start of production and cash flow.

Findings have also identified the benefits including processing of Carnallite as well as Sylvinite, which will result in reduced mining costs due to stripping ratios being less than those used in the Engineering Scoping Study.

Another major plus to move the project forward is that strong technical support is emerging for an expansion of potash production capacity beyond the planned start-up capacity of 1Mtpa - due to the ability to process Carnallite mineralisation efficiently.

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