South Boulder Mines has announced a plan to raise $9.5 million from North American investors to fund the development of its Colluli potash project in Eritrea.
The placement, priced at 95 cents a share, is being managed by US-based Sprott Private Wealth.
Sprott has committed to placing 5.26 million shares with investors, while 4.74 million shares will be issued to private equity group Meridian Capital International Fund.
South Boulder said the funds would be used to complete a definitive feasibility study for Colluli, commence early access works and provide working capital.
The DFS is on track to be completed next year, with first production targeted for no later than 2016, the company said.
South Boulder Mines shares plunged on the Australian Securities Exchange today, closing trade down 13 per cent at 87 cents.
