South Harz Faces Funding Pressure Amid Ambitious Swedish Expansion

Strategic Expansion into Swedish Critical Minerals

South Harz Potash Limited (ASX, SHP) has unveiled a robust progression of its multi-asset critical minerals strategy during the December 2025 quarter. Central to this advancement is the execution of an option agreement over the Glava 100 copper-gold-silver licence in Sweden’s Värmland Province, marking the company’s decisive entry into a highly prospective Scandinavian copper-gold district.

Building on this, South Harz swiftly submitted applications for additional exploration licences, Glava 200, Glava 300, and Klinten 100, aimed at consolidating a district-scale footprint now known as the Glava-Klinten Project. These licences, covering thousands of hectares, underscore the company’s ambition to establish a significant presence in the region’s emerging mineral landscape.

Encouraging Exploration Results Validate Historical Data

Initial fieldwork at Glava 100, conducted in November 2025, has yielded promising outcomes that validate historical mining records while revealing new mineralised zones. Rock chip sampling identified a previously unrecognised copper-gold anomaly located 300 metres from known workings, with standout assays including 9.88 grams per tonne gold and 2.88% copper. This strong correlation between copper and gold is complemented by the discovery of rare earth element mineralisation, notably high concentrations of neodymium and praseodymium, elements critical to modern technologies.

Complementing geochemical sampling, a ground magnetic survey delineated structural controls consistent with mineralisation trends, providing a refined geological framework to guide upcoming exploration phases. South Harz plans to follow up with detailed mapping, expanded sampling, and a maiden drilling program in the June 2026 quarter, signalling a pivotal step towards resource definition.

Second District-Scale Opportunity Secured at Torsby West

Further expanding its Swedish portfolio, South Harz secured a 25-kilometre copper-gold-cobalt corridor through licence applications for the Torsby West Project, approximately 40 kilometres northwest of Glava. This project lies within a geologically favourable Iron Oxide Copper Gold (IOCG) terrane, with historical artisanal mining and previous exploration indicating significant copper mineralisation. The availability of historic drill core from 19 holes offers a valuable resource for re-assessment and potential re-sampling, accelerating the path to target definition.

Corporate Developments and German Potash Assets

Aligning with its growth ambitions, South Harz appointed Christian Barbier as a Non-Executive Director post-quarter. Mr Barbier brings over three decades of experience in resources and industrial minerals, including senior roles at Allkem Limited and Iluka Resources, enhancing the company’s expertise in critical minerals supply chains and strategic growth.

Meanwhile, South Harz continues to adopt a ‘strategic patience’ approach toward its German potash assets amid challenging market conditions. Progress includes advancing its R&D tax rebate claim, expected to deliver a cash refund in the March 2026 quarter, and extending exclusivity on the potential acquisition of the Sollstedt mine property, which could complement its Ohmgebirge Potash Development project.

Financial Position and Outlook

The company ended the quarter with a cash balance of A$0.432 million, reflecting ongoing exploration expenditure and corporate costs. South Harz anticipates additional funding from its German R&D tax rebate and remains confident in its ability to raise further capital as needed to support its expanding exploration programs.

With multiple licences granted and exploration programs advancing, 2026 is shaping up as a transformative year for South Harz, as it seeks to unlock value across its diversified critical minerals portfolio.