SOUTH Boulder Mines (ASX:STB) has appointed BMT WBM to conduct physical and chemical oceanography baseline studies of the Anfile Bay location, which is currently designated for shiploading from the Colluli Potash Project in Eritrea.
BMT WBM is Brisbane based and with African experience in projects involving the Red Sea and associated Oceanographic modelling.
The Colluli resource hosts 1 billion tonnes of potassium salts and has a current JORC Compliant Measured, Indicated and Inferred Resource.
Paul Donaldson, managing director for South Boulder, said the appointment of BMT WBM was another key step in the company’s revised development strategy for Colluli.
“BMT WBM not only has experience with projects in the Red Sea, but also in-house numerical modelling capability that will support this body of work.
“We look forward to working with them along with the broader study team which has made significant progress on the revised development strategy to produce potassium sulphate from the Colluli resource.”
The results of the Oceanography study will form part of the Colluli Potash Project’s social and environmental impact assessment.
Investment from Hong Kong
Earlier this week South Boulder attracted a A$1.8 million investment at a 13% premium from the Hong Kong based Kam Lung Investment Development Company (KLID).
The importance of the placement also delivers South Boulder a strategic investor who is on the lookout for a binding offtake agreement.
The deal also gives KLID the option to buy an additional 8 million shares, exercisable at $0.35 cents upon securing a binding offtake deal for potassium sulphate on commercial terms acceptable to the CMSC board.
