SOUTH Boulder Mines directors Liam Cornelius, David Hughes and Terrence Grammer have chipped in to help complete a successful $10 million capital raising for the gold, nickel and potash explorer.
Executive director Liam Cornelius acquired 2.2 million shares pursuant to his participation in the entitlement offer. His total stake in the company is now 13.1 million shares currently valued at $16.4 million. Managing director David Hughes acquired 234,989 shares, while executive chairman Terry Grammer received 82,000 shares.
The company announced the non-renounceable entitlement offer of one new share for every 10 shares held at $1.10 each on December 7 last year, but had to cut the price of the capital raising by half later that month, to a one for five offer at $0.55 per share, in order to secure the funds, due to weak market conditions.
South Boulder’s shares had been trading in the range of $2 to $2.50 in the third quarter of 2011, but fell to $1.39 the day before the capital raising was announced. The share price subsequently hit a low of 79 cents on December 22, when the company announced changes to the terms of the offer, and has been picking up ever since.
The entitlement offer closed on January 25 following allotment of all shares. Under the fully underwritten offer, the company will have approximately $21 million in cash.
The funds raised will be used primarily to expedite the completion of the definitive feasibility study on the Colluli open cut potash Project in Eritrea. South Boulder Mines’ shares closed at $1.24 last Friday.
