South Harz Potash Ventures into Swedish Copper-Gold with Glava Acquisition Option

Strategic Expansion into Scandinavia

South Harz Potash Limited (ASX, SHP) has announced a significant step in its European growth strategy by securing an option to acquire the Glava copper-gold project in western Sweden. This advanced exploration asset lies within a historically productive copper-gold province, boasting high-grade mineralisation and a favourable investment climate ranked sixth globally by the Fraser Institute in 2024. The project benefits from minimal glacial till cover, enabling cost-effective exploration techniques and rapid drill targeting.

The company plans to commence drilling in the June 2026 quarter, aiming to test down-dip extensions of mineralisation and geochemical anomalies identified through recent rock sampling and ground magnetic surveys. Historic artisanal mining at Glava, dating back to 1916-1918, produced notable copper grades, underscoring the project's potential.

Complementing Core Potash Assets in Germany

Alongside this copper-gold opportunity, South Harz continues to advance its flagship Ohmgebirge potash project in Thuringia, Germany. The project holds a substantial ore reserve of 83.1 million tonnes at 12.6% potassium oxide, supported by a comprehensive pre-feasibility study completed in 2024. With perpetual mining licences and a strategic location near established infrastructure, Ohmgebirge is positioned as a critical asset for European food security and import substitution.

South Harz emphasises the project's environmental credentials, including low surface impact and zero effluent discharge, aligning with Europe's increasing focus on sustainable mining practices. The company is actively seeking development partners to realise the full value of this brownfield potash asset.

Multi-Commodity Strategy Aligned with European Priorities

The acquisition option for Glava fits within South Harz's broader vision of building a diversified portfolio of strategic metals and minerals that support European self-sufficiency and the energy transition. By hedging across commodities and jurisdictions, SHP aims to mitigate geopolitical risks and capitalise on momentum commodities like copper and gold, which are critical to clean energy technologies.

European policy shifts and funding availability for quality projects further enhance the attractiveness of SHP's portfolio. The company highlights operational flexibility and multiple pathways to value creation, including staged development and potential pivots in production to optimise margins.

Governance and Financial Position

South Harz is led by an experienced board with deep mining and financial expertise, including Executive Chair Len Jubber and Non-Executive Directors Reinout Koopmans, Rory Luff, and Richard Pearce. The company maintains a lean project advancement team and a capital structure supporting its growth ambitions, with approximately 130 million shares on issue and a market capitalisation of A$3.25 million as of late 2025.

The acquisition option involves a modest consideration payable in SHP shares and a 1.5% net smelter royalty to the vendor, McKnight Resources AB, reflecting a capital-conserving approach through collaboration.

Outlook and Market Context

Global potash supply constraints, exacerbated by geopolitical tensions and declining arable land, underpin the strategic importance of SHP's Ohmgebirge project. Meanwhile, the Glava copper-gold project offers exposure to a high-potential exploration district in a stable jurisdiction, complementing the company's potash focus with precious and base metals exposure.

As Europe seeks to bolster its resource security and transition to cleaner energy, South Harz's diversified portfolio and forward-looking strategy position it well to capture emerging opportunities. The coming months, particularly the planned drilling campaign at Glava, will be critical in validating the project's potential and shaping SHP's growth trajectory.