South Harz Potash Ltd (ASX:SHP) has completed the placement of its entitlement offer shortfall, raising an additional $496,915.
This funding effort is part of the company's ongoing development of the Ohmgebirge Potash Project.
The placement involved 21.605 million shares priced at $0.023 each. Of these, 16.605 million shares were issued immediately, with the remaining 5 million shares scheduled for issuance next week.
Funds for Ohmgebirge
The completion of this entitlement offer, including the shortfall, has netted the company around $1.1 million before costs.
Funds are earmarked for the completion of a pre-feasibility study (PFS) on the Ohmgebirge project in Germany, which is on track to be finalised in early Q2 this year.
Morgans Stockbroking played a key role as the lead manager for the shortfall placement.
Alongside this news, the company reports making headway in its collaboration with NDH-E/DEUSA International GmbH (Deusa), focusing on long-term access and use of Deusa's Bernterode shaft infrastructure.
Partnership for infrastructure
The partnership, formalised through a non-binding Memorandum of Understanding (MoU), is pivotal for advancing the Ohmgebirge PFS and spatial planning application.
The exclusivity period granted by the MoU is set to expire on March 31 and South Harz is in advanced discussions with Deusa to secure a definitive commercial agreement for the long-term use of the necessary infrastructure.