South Boulder slumps on $10m raising

South Boulder Mines hopes to raise $10.1 million through a one-for-ten share deal at $1.10 per share.

The company is offering one attaching unlisted option for every two new shares subscribed for, exercisable at $1.60 each and expiring a year after the date of issue.

New shares issued under the offer will rank equally with existing shares on issue.

South Boulder said the funds raised will be used to expedite the completion of a feasibility study on the Colluli project in Eritrea, and to provide general working capital.

South Boulder shares closed down 22 cents to $1.28.