South Harz Potash Ltd (ASX:SHP) has completed its pro-rata non-renounceable entitlement issue, which together with the completion of the recent placement, has raised around $1.57 million to advance the brownfield Ohmgebirge Potash Development in Germany.
The company has summarised its corporate and operational activities focus — in-line with its streamlined low-cost optimisation setting with consideration of current global potash markets, progressing:
- completion of detailed due diligence and negotiation of definitive documentation for the purchase of the neighbouring Sollstedt mine property from Deusa International GmbH;
- advancement of preparatory stage 2 permitting activities (framework operating plan) for the Ohmgebirge Potash Development following grant of the spatial planning assessment;
- qualification assessment for potential German R&D tax incentive rebates and complementary funding opportunities such as freight rail access and clean energy utilisation / critical minerals grants; and
- evaluation of long-term definitive feasibility study design and development funding pathways, including potential strategic partnership.
Capital raise complete
The entitlement issue offered one share for every three shares held by eligible shareholders on August 15, 2024, at an issue price of A$0.01 per share, to raise up to A$2,966,894.
Committed funds from the recent placement and the completed entitlement offer total around A$1.57 million in new equity.
Acceptances under the entitlement offer include $94,021 (9,402,095 new shares) of entitlements subscribed for by non-executive director Rory Luff, and $13,040 (1,303,973 new shares) of entitlements subscribed for by executive chair Len Jubber.
Of the 296,689,424 shares offered under the entitlement offer, 54,109,646 shares (representing new equity of $541,096) were applied for, leaving a shortfall of 242,579,778 shares.
The entitlement offer closed last Monday September 16, 2024 and the allotment of the new shares will take place today.