SOUTH Boulder Mines (ASX:STB) has completed its 2.05 million private placement to Hong Kong based Special Purpose Vehicle Well Efficient Limited.
The 10 million shares were priced at 0.205 each representing a 6% premium to South Boulder’s 30 day VWAP.
Proceeds will be used to complete the Definitive Feasibility Study (DFS) work for the Colluli Potash Project located in Eritrea in 2015.
Well Efficient Limited is associated with well-known resource and private equity industry executive James Huang who is based in Hong Kong.
Huang has experience and a network of relationships in Greater China and Eritrea with international resource companies private equity funds and governments.
The Colluli Pre-Feasibility Study is expected to be completed in February 2015.
Project Background:
In late 2014, the company commenced pilot testing of the Colluli process design at the Saskatchewan Research Council in Saskatoon, Canada.
The Colluli Potash Project in Eritrea now hosts a highly-favourably suite of potassium bearing salts for low cost production of potassium sulphate (SOP or sulphate of potash) using simple mineral processing units (flotation and mixing).
Commercial grade SOP has already been produced from Colluli salts at the Saskatchewan Resource Council.
SOP achieves a substantial price premium over the more common potassium chloride.
Colluli is strategically located closer to port than potassium sulphate peers with trucking a low cost option to access port, with deepwater access at Anfile Bay suitable for loading vessels up to Panamax size.
Commercial grade SOP has already been produced from Colluli salts at the Saskatchewan Resource Council.
The Pre-Feasibility Study is expected to be completed in February 2015.
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