In a strongly supported share purchase plan to existing shareholders, South Harz Potash Ltd (ASX:SHP) has raised $990,000, adding to the $2.6 million recently raised in a placement to institutional investors, as the company continues to build Western Europe's largest potash inventory in Germany's South Harz potash district.
The funds were raised to advance South Harz’s flagship Ohmgebirge Potash Project, including driving the delivery of a pre-feasibility study (PFS), permitting and environmental baseline study work, as well as early commencement of select definitive feasibility study (DFS) workstreams and general working capital.
Share purchase plan successfully closed
The share purchase plan, which was strongly supported by eligible shareholders, was oversubscribed beyond the $500,000 that the company had sought to raise.
South Harz received more than 120 applications for around $990,000 at the issue price of $0.03 per share together with a 1-for-4 attaching unlisted option with an exercise price of $0.08 per share and expiry of August 10, 2026. Given the strong interest, the company opted to accept all applications in full.
This will see a total of 32,999,937 million new fully paid ordinary shares issued tomorrow, representing approximately 4.8% of South Harz’s existing ordinary shares on issue. The additional free attaching options will be subject to shareholder approval at an upcoming general meeting in October.
Funds support Ohmgebirge development
The oversubscribed share purchase plan follows the successful completion of a placement to new and existing institutional and sophisticated investors earlier this month that raised $2.6 million, on the same terms. The placement included commitments totalling $215,000 from South Harz board members.
South Harz managing director and CEO Luis da Silva said: “I would like to thank all eligible shareholders who participated in the SPP, resulting in a pleasing level of oversubscription. We have taken the decision to accept all applications in full so as to recognise and thank these shareholders for their support of our funding initiatives.
“The funds raised via the placement and SPP will facilitate the ongoing advancement of our Ohmgebirge Potash Development, including completion of the PFS currently in progress.
"Our work to date continues to affirm the world-class nature of Ohmgebirge and its strong potential to leverage existing regional infrastructure and a genuine brownfield development pathway.
"We look forward to providing further updates as key outcomes are progressively concluded and the PFS advances towards targeted completion later this year.”