Shortfall Looms as South Harz Potash Seeks to Complete $3.11M Equity Raise
South Harz Potash has completed a partial entitlement offer raising A$566,000, with directors backing the raise, as it pushes to secure the full A$3.11 million to fund its dual-asset growth strategy in Germany.
- Entitlement offer raised 44% of targeted shares, A$566,000
- Shortfall of A$717,000 remains to be placed
- Directors subscribed strongly, showing confidence
- Total equity raise target of A$3.11 million to advance projects
- Focus on dual-asset strategy including Ohmgebirge and new acquisitions
Entitlement Offer Completion
South Harz Potash Limited (ASX, SHP) has announced the completion of its pro-rata non-renounceable entitlement offer, which raised approximately A$565,984 from shareholders, representing 44% of the shares offered. The offer, priced at A$0.003 per share, closed on 25 July 2025 and included attaching options exercisable at A$0.006 within two years. Despite solid participation, a shortfall of A$717,080 remains, equating to nearly 239 million shares yet to be placed.
Director Support and Share Structure
Notably, South Harz’s board demonstrated strong support, with directors Rory Luff, Reinout Koopmans, and Executive Chairman Len Jubber subscribing for significant portions of their entitlements. This insider participation signals confidence in the company’s prospects. Following allotment, South Harz will have over 1.47 billion ordinary shares and more than 200 million options on issue, positioning the company for its next phase of development.
Capital Raising and Strategic Outlook
The entitlement offer forms part of a broader capital raising effort targeting up to A$3.11 million, including a recent two-tranche placement. To date, the company has secured approximately 77% of this target, with ongoing efforts to place the shortfall shares. The funds raised will underpin South Harz’s dual-asset strategy, which involves acquiring a complementary mining project alongside advancing its flagship Ohmgebirge Development and the wider South Harz Potash Project in Germany.
Project Development and Market Position
South Harz’s Ohmgebirge project benefits from a substantial JORC-compliant mineral resource and a positive pre-feasibility study completed in 2024. The company is also pursuing strategic opportunities such as the acquisition of the nearby Sollstedt mine, which offers existing infrastructure to reduce capital expenditure and accelerate development timelines. This approach aims to position South Harz as a responsible potash producer serving the European market, leveraging both resource scale and operational efficiencies.
Next Steps and Market Implications
With the entitlement offer closed and shortfall placement underway, South Harz is focused on swiftly completing its capital raising to fully fund its growth ambitions. The company’s strategy to blend project acquisition with organic development reflects a pragmatic approach to building value in a critical minerals sector that is gaining strategic importance globally. Investors will be watching closely how the shortfall placement unfolds and how effectively South Harz executes on its dual-asset plan.
Bottom Line?
South Harz’s capital raise progress sets the stage for a pivotal year as it seeks to transform its potash assets into a European mining success story.
Questions in the middle?
- Who will subscribe to the remaining shortfall shares and on what terms?
- What timeline is South Harz targeting for acquiring the complementary mining project?
- How will ongoing German regulatory and funding incentives impact project development?
