Thursday, 16 February 2012

South Boulder Mines and Strata Minerals team up at Cardabia Phosphate Project in WA

South Boulder Mines (ASX: STB) and the TSX listed Strata Minerals Inc. (TSX-V: SMP) have entered into a joint venture at the non-core Cardabia Phosphate Project in Western Australia.

The agreement allows for Strata to own an 80% interest in the project and to sole fund all exploration through to the completion of a Bankable Feasibility Study.

Lorry Hughes, managing director of South Boulder commented on the deal:

“We have been looking for some time to unlock value for our shareholders in some of our non-potash fertilizer assets, which tend to be overshadowed by the magnitude and potential of the flagship Colluli Potash Project.

"The agreement allows for the Cardabia project to be explored by an experienced phosphate company at no risk or cost to South Boulder.”

Cardabia comprises five exploration tenement applications for a total area of around 1600 square kilometres, located 80 kilometres south of Exmouth and 1000 kilometres from Perth

Historical work conducted at the project in the late 1980’s defined widespread shallow nodular phosphate in air-core drilling.

Details of the deal

- South Boulder has received $200,000 in cash and Strata has been granted TSX Venture approval on the 13th February 2012 for the Cardabia transaction. 2.5 million fully paid Strata shares will be allotted and in return Strata has acquired an 80% interest in the project;

- South Boulder retains a 20% free carried interest through to the completion of a Bankable Feasibility Study; and

- Project divestment allows South Boulder to further focus efforts on the expedited development of the Colluli Potash Project and continue transitioning the company into a potash producer.

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