Australia-listed Davenport Resources has received firm commitments for a placement of new securities to a range of sophisticated and institutional investors to raise a total of $10-million.
The capital raising will ensure that Davenport is well funded to advance its portfolio of four standalone potash projects in the South Harz region of Germany, the company said on Friday.
“This capital raising is transformational for Davenport and we are delighted that this ambitious raising, representing the top end of the directors’ target of $8-million to $10-million has been so overwhelmingly successful,” said CEO Chris Gilchrist.
The projects in South Harz host a combined 5.3-billion tonnes of potash resource – the largest resource in Western Europe. The funds raised would allow the company to move forward with a confirmatory drilling programme at the first of these projects – the Ohmgebirge project – to upgrade the classification of the 325-million tonnes at 13.14% K2O for 43-million tonnes of resource from the inferred category to measured and indicated.
The funds would also be used to start the Ohmgebirge definitive feasibility study with the balance of the funds raised to be used for working capital purposes.