23/05/2008 - 15:11

South Boulder: new capital and board

23/05/2008 - 15:11

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South Boulder Mines Ltd has announced the details of a $2 million capital raising and a major restructuring of its board of directors.

South Boulder Mines Ltd has announced the details of a $2 million capital raising and a major restructuring of its board of directors.

The capital raising is through Sprott Asset Management, via a placement of 6.4 million shares at an issue price of 31 cents.

The funds raised will be used to advance the company's move into the exploration for potash and phosphorous "fertilizer" minerals and advancement of the Duketon Project.

The placement consists of two tranches, "Tranche 1" of 4.3 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $1.3 million immediately.

The second tranche "Tranche 2" will require shareholder approval and will consist of 2.1 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $0.7 million.

South Boulder Mines welcomes the support of Sprott Asset Management ("Sprott") in participating in the issue.

Integral Wealth Limited (Toronto) acted as Lead Manager to the Placement.

Meanwhile, the company has advised that Mr Lorry Hughes has been appointed Managing Director replacing Mr Liam Cornelius who will continue his involvement with the Company in the position of Executive Director.

Additionally, Mr Terry Grammer has been appointed Chairman of the board replacing Mr Brian Rear who is resigning from the board to concentrate fully on his role as Managing Director of CopperCo Limited.

Finally, Mr Dennis Wilkins resigns as Non-Executive Director and remains Company Secretary.

Mr Hughes is a Geologist with 15 years industry experience and was South Boulder Mines' Exploration Manager since March 2008.

Mr Hughes has held management positions on exploration and operational mining projects for Energy Metals Ltd, CSA Australia and Energy Resources Australia. His industry experience was gained from various gold mines and exploration prospects in the NE goldfields of Western Australia while working for Plutonic/Homestake, Aberfoyle and Mt Grace. Mr Hughes has also experience in Malaysia and Indonesia working at the Penjom gold mine in Malaysia and on gold and base metals exploration projects for Pt Inco in Indonesia.

Mr Hughes has previously been responsible for mining and exploration/development operations management including, geological resource interpretation/estimation, project generation, mine planning, near mine resource development and environmental management.

Mr Grammer is a geologist with a history of exploration success over his 35 year career. He is credited with the discovery of the Cosmos Nickel mine W.A. for which he received the joint prospector of the year award in 2000. Mr Grammer was a founding member of Western Areas NL which is focused on developing the Forrestania Nickel Project in W.A.
Currently Mr Grammer is a non-executive director of Hannans Reward Limited and a founding director of Montezuma Mining Company Limited.
South Boulder thanks Mr Rear for his efforts in the formative years of South Boulder where he was instrumental in the Company's IPO process and listing on ASX.
South Boulder looks forward to the rapid advancement of its exploration portfolio and to bringing shareholders news and updates on progress as they occur.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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