South Harz Potash raises further $450,000 to advance Ohmgebirge potash development

South Harz Potash Ltd (ASX:SHP) has received binding commitments for a further $450,000 taking new equity raised recently by the potash development company to A$2,021,096 before costs.

The company has secured commitments from investors to apply for 40 million shortfall shares at A$0.01 each as part of an entitlement offer announced on September 23, 2024, raising A$400,000. Efforts to place the remaining 202,579,778 shortfall shares are ongoing.

Private placement

Additionally, executive chairman Len Jubber has committed to subscribing for 5 million new shares at A$0.01 for A$50,000 via a private placement on the same terms as the shortfall shares. This is subject to shareholder approval at the company's upcoming Annual General Meeting.

The entitlement offer follows South Harz’s recent placement to advance the brownfield Ohmgebirge potash development in Germany.

Total new equity raised, including the entitlement offer and the current commitments, amounts to A$2,021,096.

This includes A$401,167 in new equity subscriptions from South Harz’s directors, which also remain subject to shareholder approval at the forthcoming AGM.

Use of funds

In alignment with SHP's streamlined low-cost optimisation strategy within the current global potash markets, it will use the funds for the following:

1. Finalising detailed due diligence and negotiating definitive documentation for the acquisition of the neighbouring Sollstedt mine property from Deusa International GmbH.
2. Progressing preparatory Stage 2 permitting activities (Framework Operating Plan) for the Ohmgebirge Potash Development, following the receipt of the Spatial Planning Assessment.
3. Conducting qualification assessments for potential German R&D tax incentive rebates (to bolster working capital), as well as exploring complementary funding opportunities such as freight rail access and clean energy utilisation or critical minerals grants.
4. Evaluating long-term design and development funding pathways for the definitive feasibility study (DFS), including potential strategic partnerships.