South Harz Raises A$180K in Shortfall Placement, Total Equity Hits A$2.58M
South Harz Potash Limited has closed its shortfall placement, raising A$180,000 and bringing total equity raised to A$2.58 million to fund its dual-asset strategy in Germany.
- Closed shortfall placement raising A$180,000 via 60 million shares and options
- Directors committed A$70,000, subject to shareholder approval at upcoming AGM
- Total capital raised reaches approximately A$2.58 million, 83% of A$3.11 million target
- Funds to support Ohmgebirge Development and acquisition of complementary mining project
- Strategic focus on leveraging German government grants and partnerships
Capital Raising Closure Marks Key Milestone
South Harz Potash Limited (ASX, SHP) has successfully closed its shortfall placement following a recent entitlement offer, securing A$180,000 through the issuance of 60 million new shares accompanied by attaching options. This latest tranche includes a significant commitment from company directors, who have pledged A$70,000 worth of shares, pending shareholder approval at the forthcoming Annual General Meeting.
The completion of this placement brings the total equity raised from recent capital raising activities to approximately A$2.58 million, representing about 83% of the company’s previously announced target of A$3.11 million. These funds are earmarked to advance South Harz’s dual-asset strategy, which aims to strengthen its position in the European potash market.
Strategic Growth and Project Development
South Harz’s core asset, the Ohmgebirge Development in Germany’s historic South Harz Potash District, remains central to its growth plans. The project, supported by a positive Pre-Feasibility Study and a maiden Ore Reserve declaration, benefits from proximity to the Sollstedt mine, which offers valuable underground infrastructure to reduce capital expenditure and environmental footprint.
Beyond Ohmgebirge, the company is actively pursuing the identification and acquisition of a complementary mining project to diversify and enhance its portfolio. This approach is designed to leverage synergies within the region and capitalize on the broader South Harz Potash Project’s extensive mineral resources.
Funding Utilization and Future Outlook
The newly raised capital will also support South Harz’s efforts to secure additional funding avenues, including German government grants and strategic partnerships with financial and industry stakeholders. These initiatives aim to preserve and grow the long-term value of the company’s assets while maintaining momentum on permitting and development milestones.
Executive Chairman Len Jubber expressed confidence in the company’s trajectory, highlighting that the successful capital raising reflects strong investor belief in South Harz’s strategic direction and asset base. With funding now in place, the company is positioned to execute its growth initiatives over the next 9 to 12 months, delivering value to shareholders and advancing its footprint in the European potash sector.
Bottom Line?
South Harz’s near-complete capital raise sets the stage for strategic expansion, with upcoming shareholder approvals and project acquisitions in focus.
Questions in the middle?
- Will shareholders approve the issuance of director shares and options at the AGM?
- Which complementary mining project will South Harz target next to expand its portfolio?
- How will government grants and strategic partnerships influence the pace of development?
