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Davenport announces US$10 million placement to advance potash projects

Published by , Editorial Assistant
World Fertilizer,

Davenport Resources has completed a US$10 million share placement, allowing advancement at its four standalone potash projects in the South Harz region of Germany, which host 5.3 billion t of potash resource.

Specifically, the funds raised will allow the company to move forward with a conformity drilling programme at the Ohmgebirge potash project. This move aims to upgrade the classification of the 325 million t at 13.14% K2O for 43 million t of K2O resource from the ‘Inferred’ category to ‘Measured and Indicated’, and facilitate the release of its encouraging economic study. Work will also commence on Ohmgebirge’s definitive feasibility study with the balance of funds raised to be used for working capital purposes.

The placement received strong support from existing shareholders, the Davenport Board and new sophisticated and institutional investors.

CEO of Davenport, Dr Chris Gilchrist, said: “This capital raising is transformational for Davenport and we are delighted that this ambitious raising, representing the top end of the Directors’ target of US$8 – 10 million, has been so overwhelmingly successful. Through the support of existing shareholders and the high level of interest shown by new sophisticated and institutional investors, we can now look forward to an exciting journey leading to the most significant work programme we have undertaken to date to upgrade our resources at Ohmgebirge next year, the release of our compelling scoping study and the initiation of a definitive feasibility study for the project. We have mapped out in detail the tasks ahead and we look forward to announcing our progress over the coming months.”

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