South Harz Potash Ltd has provided an update on its 100%-owned Ohmgebirge Potash Development (Ohmgebirge) in Thuringia, Germany, and its broader corporate activities.
South Harz has undertaken an initial placement of 42 550 000 shortfall shares representing A$425 500. The shortfall shares were issued on 19 November 2024 pursuant to section 2.6 of the Entitlement Offer Prospectus and follows its recently completed Entitlement Offer.
In addition, 4 147 500 shares were also issued to a service provider at A$0.01 per share in exchange for the provision of services to the company to the value of A$41 475. These shares will be issued out of the company’s ASX listing rule 7.1 placement capacity.
Additionally, previously announced firm commitments for 17 450 000 new shares, representing A$174 500 of new equity (inclusive of a commitment for 5 000 000 shares representing A$50 000 of new equity from Executive Chairman Len Jubber, subject to shareholder approval), remains pending receipt.
In aggregate, new equity (issued or committed) now totals approximately A$2.213 million (before costs). This comprises new equity from the recent placement (including commitments for equity from Directors, subject to shareholder approval), completed Entitlement Offer and further placements of shares as set out above.
In accordance with section 2.6 of the Prospectus, the shortfall offer can remain open until 13 December 2024, which is three months following the closing date of the entitlement offer, unless the directors decide to close the shortfall offer earlier.
Sollstedt acquisition:
Detailed due diligence activities and negotiation of definitive documentation for the purchase of the neighbouring Sollstedt mine property from Deusa International GmbH (Duesa) are advancing, with the exclusivity date recently extended by agreement with Deusa to 28 February 2025 as previously announced.
Both parties continue to target finalisation and execution of definitive transaction documentation by 28 February 2025.
Investor site visit:
In early November 2024, South Harz hosted an investor site trip to Ohmgebirge and across its broader South Harz Potash Project tenure. The visit included an underground tour at the neighbouring Sollstedt mine and driving underground to the potential access areas towards Ohmgebirge, and visiting potential/targeted areas for processing and logistics.
Feedback received from the visit included an enhanced appreciation of the scale of the opportunity and the extent of the existing infrastructure, and accompanying brownfield development benefits, offered by the targeted acquisition of the Sollstedt mine property.