(MENAFN- ProactiveInvestors)
() is well positioned to complete the Definitive Feasibility Study for its Colluli potash project in Eritrea with shareholders applying for $1.8 million worth of shares under its rights offer priced at $0.25.
The subscription for 7336337 shares represents a strong take-up of 54.7% of the 13400167 shares on offer in challenging capital markets.
All company directors took up their entitlements under the 1 for 12 non-renounceable pro-rata rights issue.
South Boulder will now proceed to place the remaining 6063830 shortfall shares to underwriters () and RSR Premier Holdings to raise an additional $1.5 million.
In April the company raised $2.74 million through a placement of shares to Well Efficient Limited of Hong Kong and Arlington Group Asset Management (AGAM) of London.
Proceeds from the $6 million capital raising will be used to:
- Complete the Definitive Feasibility Study for the Colluli Potash Project;
- Build in house capability to support the development of the project;
- Advance funding discussions for the project; and
- Provide working capital.
Colluli Potash Project
Colluli is a 50/50 joint venture between the Eritrean National Mining Company (ENAMCO) and South Boulder that is strategically located 75 kilometres from the coast making it one of the most accessible potash deposits globally.
Earlier this month the company delivered a globally significant maiden ore reserve of 1.1 billion tonnes at 10% K2O equivalent at the Colluli Potash Project in Eritrea.
Developing story…
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