South Harz Potash Ltd (ASX:SHP) has received firm commitments from existing and new institutional investors to raise $2.6 million in an equity placement offering shares at $0.03 each.
The placement includes a 1-for-4 attaching option at a strike price of $0.08, that expires in three years.
SPP offer
SHP is also offering existing shareholders the option to subscribe for up to $30,000 worth of new shares on the same terms as the placement under a share purchase plan (SPP) to raise up to an additional A$500,000.
The capital-raising funds will be used to advance the Germany-based Ohmgebirge Potash Project’s pre-feasibility, permitting, environmental and early definitive feasibility studies, as well as general working capital.
South Harz board members and their related parties have demonstrated their commitment and belief in the project by subscribing for $215,000 worth of shares in the placement.
Targeting PFS completion for this year
"I would like to thank existing shareholders who participated in the placement, as well as welcome a number of new, high-quality institutional and sophisticated investors to the South Harz register, including new European-based participation,” South Harz Potash CEO Luis da Silva said.
“The funds raised via the placement and SPP are expected to facilitate the ongoing advancement of our Ohmgebirge Potash Development, including completion of the pre-feasibility study (PFS) currently in progress.
“Our work to date continues to affirm the world-class nature of Ohmgebirge and its strong potential to leverage existing regional infrastructure and a genuine brownfield development pathway.
“We look forward to providing further updates as key outcomes are progressively concluded and the PFS advances towards targeted completion later this year.”
South Harz expects short-term milestones based on this funding to include submission of the full Ohmgebirge Spatial Planning Application (with a single development pathway election) and finalisation of the PFS for the project.
The Ohmgebirge Project holds an inferred mineral resource of 5 billion tonnes at 10.6% K2O (potassium oxide or potash) and an indicated resource of 258 million tonnes at 13.5% K2O across four wholly-owned project areas.