South Boulder plans $7m placement

South Boulder Mines has announced plans to raise $7 million via a placement to advance the development of its Colluli potash project.

South Boulder Mines will issue 3.5 million shares at an issue price of $2.00 per share.

In a statement to the Australian Securities Exchange, South Boulder said the placement was at a premium to the most recently traded share price and was further validation of the company's extremely significant potash development project.

"The placement will be made to Sprott Asset Management LP, for and on behalf of certain Sprott Funds and managed accounts," the statement said.

When the funds are received the company will have working capital of approximately $13.5 million.