Parkway Minerals NL (ASX:PWN) has raised $500,000 via a private placement of about 50 million shares at 1 cent each.
Parkway will use the funds to participate in a placement by Davenport Resources (ASX:DAV), which is building on the exploration success at its South Harz potash project in Germany.
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Davenport recently raised $2.1 million in which Parkway has been allocated 7.1 million shares to hold about 32% of Davenport’s issued shares at the completion of the transaction.
Parkway strongly supports Davenports plan to use funds to fast track the conversion of significant drilling information to a JORC compliant resource and to identify further drill targets.
Davenport is advancing the project towards its goal of establishing Europe’s largest undeveloped potash inventory.
Parkway managing director Patrick McManus said: “The South Harz project is producing strong exploration results.
“The recent announcements of a JORC Inferred Resource at Ebeleben (ASX: 16 April 2018) and historic resources at Ohmgebirge (ASX: 18 June 2018) are testament to that.
“We are firmly behind Davenport’s commitment to quickly advance the South Harz potash project and look forward to the achievement of key milestones in the months ahead.”
READ: Parkway Minerals to commence drilling for potash at salt lake
Parkway is also continuing to advance its exploration projects in Western Australia, focused on sulphate of potash and glauconite deposits.
Aircore drilling is currently underway at the large-scale Lake Barlee Potash project.
At the more advanced Dandaragan Trough Project, the company's patented K-Max® potassium extraction process is set to add value to the large greensand deposits there.