South Harz Secures Option for High-Grade Glava Cu-Au-Ag Project in Sweden

South Harz Potash Diversifies Its Portfolio

South Harz Potash Limited (ASX, SHP) has announced a pivotal move to broaden its resource base beyond potash by entering into an option agreement to acquire the Glava Copper-Gold-Silver project in Sweden’s Värmland Province. This marks the company’s first acquisition under a newly adopted multi-asset growth strategy aimed at expanding into critical and precious metals essential for global supply chains and the energy transition.

The Glava project is situated within a geologically prospective and underexplored copper-gold district in Scandinavia, known for its high-grade epithermal copper mineralisation. Historic artisanal mining at the site recorded copper grades as high as 10.5%, with recent sampling confirming the presence of associated gold, silver, and tellurium; metals increasingly valued for their industrial and technological applications.

Exploration Progress and Strategic Partnership

South Harz has already completed initial field activities, including a detailed ground magnetic survey and rock chip sampling, under the guidance of McKnight Resources AB, the project’s current permit holder and exploration partner. These efforts aim to refine drill targets ahead of a planned drilling campaign scheduled for mid-2026. The magnetic survey results are expected by December 2025, with assay results from rock samples anticipated by the end of January 2026.

The option agreement not only secures exclusive rights to acquire the Glava permit but also establishes a strategic relationship with McKnight Resources, providing South Harz with established local expertise and exploration capabilities in Sweden. This collaboration is critical given Sweden’s status as a Tier-1 mining jurisdiction, renowned for its transparent regulatory environment and strong government support for mineral exploration.

Balancing Growth with Strategic Patience

While South Harz pursues this new avenue, it maintains a strategic patience approach with its flagship South Harz Potash Project in Germany, which benefits from perpetual tenure and low holding costs. The company continues to seek development partners for this advanced potash asset, recognising that potash pricing dynamics currently limit its valuation. The Glava acquisition thus complements the potash portfolio by adding exposure to metals critical for the European energy transition and resilient supply chains.

Financially, the option exercise involves a payment of A$150,000 in South Harz ordinary shares, subject to shareholder and regulatory approvals following satisfactory technical, financial, and legal due diligence. A 1.5% net smelter royalty will also be payable to McKnight Resources upon acquisition completion.

Outlook and Market Implications

South Harz’s move into copper-gold exploration in Scandinavia signals a strategic evolution from a single-asset potash company to a diversified European resource player. The Glava project offers immediate discovery potential with visible mineralisation and a history of artisanal production, while the company’s disciplined exploration program aims to unlock value through systematic evaluation and drilling.

As the company integrates new data and advances exploration, investors will be watching closely for assay results and drill outcomes that could validate the project’s potential and reshape South Harz’s market positioning.