South Boulder taps investor for $2m

West Perth-based explorer South Boulder Mines has tapped a private investor for nearly $2.1 million, through a placement of 10 million shares.

The private placement, which will be issued at a 6 per cent premium to South Boulder’s 30-day volume weighted average price, will be made to Hong Kong-based Well Efficient.

The funds will be used to complete a definitive feasibility study at South Boulder’s Colluli potash project at Eritrea, in the Horn of Africa.

“As the project continues to advance further along the development path towards production, we anticipate that other international groups, particularly those based in Greater China, North America and Europe which have consistently shown great interest in the Colluli project, will become involved with the development of our potash project,” managing director Paul Donaldson said.

South Boulder shares were 2.7 per cent higher at 19 cents per share at the close of trade.