South Harz Potash Ltd (ASX:SHP) is taking its first major step toward becoming a diversified resources company, entering an option heads of agreement to acquire the Glava copper-gold-silver project in south-western Sweden. The move signals a deliberate strategic shift: rather than remaining a single-asset potash developer in Germany, South Harz aims to broaden its portfolio into a multi-commodity, multi-asset platform with exposure to critical and precious metals.
The Glava Project spans 430 hectares in Sweden’s Värmland region and sits within the eastern extensions of the Proterozoic Grenville Orogenic Belt. This belt is quickly emerging as a promising exploration district for copper and gold, extending through Scandinavia, the UK, Greenland and Newfoundland.
Location of the Glava Cu-Au-Ag Project in Western Sweden.
Underexplored copper-gold system
At Glava, the company has identified what it considers a highly prospective, underexplored copper-gold system characterised by outcropping bornite, covellite and chalcocite mineralisation. Visible tellurides have also been mapped at the two main occurrences, Glava Koppagruvor and Skarpning SV Glava — a feature often associated with epithermal gold deposits and one that adds to the project’s geological appeal.
The area has a modest history of artisanal mining.
At Glava Koppargruvor, around 2,280 tonnes of rock were historically extracted, including a 49-tonne parcel grading 10.5% copper. Some enriched ore stockpiles from early 20th century shallow workings remain at surface. More recently, in 2024, McKnight Resources AB completed a rock-chip sampling program over the East Pit waste dump.
Several samples returned more than 1% copper, with others showing meaningful gold, silver and tellurium values. One standout sample reported 4.89 g/t gold, 49 g/t silver and 1.29% copper, while other samples contained gold grades exceeding 2 g/t alongside elevated tellurium — results that reinforce the polymetallic nature of the system.
Executive chairman Len Jubber said the opportunity represented a transformational moment for the company.
“The Glava acquisition option represents an exciting milestone and opportunity for South Harz to leverage our European footprint into one of the most geologically prospective and underexplored copper-gold provinces in Scandinavia. This first step transforms South Harz into a diversified resources company, moving from a single-asset company towards a broader regional platform. While we maintain strategic patience with our large-scale South Harz Potash Project, we are broadening our portfolio to include metals essential to global supply chains and the energy transition.
"The Glava Project offers immediate discovery potential, hosting visible bornite, covellite, and chalcocite epithermal mineralisation with gold, silver and tellurium in outcropping vein systems, including historic artisanal production of over 10% copper. Negligible glacial till allows for the use of proven, cost-effective exploration techniques. Initial field activities including a magnetic survey have been completed under the guidance of McKnight Resources, and we look forward to analysing and interpreting the gathered information in the coming weeks. We are committed to systematically exploring Glava’s potential, while continuing to evaluate complementary opportunities to strengthen the portfolio and create sustained shareholder value.”
Rapid progression expected
Fieldwork began in November 2025 under an exclusivity period and is structured to progress the project rapidly to drill-ready status. Phase 1, continuing through the March 2026 quarter, includes geological mapping, rock-chip sampling and a 40-line-kilometre ground magnetic survey on 25-metre spacing. Geochemical surveys are also underway.
All datasets — structural, geochemical and geophysical — will be integrated into a central GIS platform to refine drill targets. Magnetic survey results are expected in December 2025, with rock-chip assays likely by late January 2026.
Phase 2 is anticipated to start in the June quarter and is expected to involve rotary core drilling, initial diamond drilling and early metallurgical test work.
Proposed Glava Work Program.
Details of the deal
Under the option agreement, South Harz will fund up to A$304,000 in exploration activities between November 2025 and March 2026. It may exercise the option any time up to 30 days after the work program concludes. Should it proceed, the company will acquire full ownership of the Glava permit for A$150,000 in shares, with McKnight retaining a 1.5% net smelter royalty.
South Harz describes Sweden as a Tier-1 exploration jurisdiction with strong regulatory stability and government support for critical minerals.
The company views the Glava opportunity — and other potential Scandinavian permit applications — as complementary to its long-life German potash assets, positioning it for a broader, multi-asset growth strategy.