Transformational Placement To Develop German Potash Projects
Davenport Resources Limited (ASX:DAV) has received firm commitments for a placement of new securities to a range of sophisticated and institutional investors, including existing shareholders, Directors and new investors to raise a total of A$10 million.
CEO, Dr Chris Gilchrist, said the capital raising places the company in its strongest financial position to date, ensuring it is well funded to advance its portfolio of four standalone potash projects in the South Harz region of Germany which host a combined 5.3 billion tonnes of potash resource, the largest potash resource in western Europe.
Specifically, funds raised will 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 325Mt @ 13.14% K2O for 43Mt of K2O resource from the Inferred category to Measured and Indicated and facilitate the release of its encouraging economic study.
Dr Gilchrist said work will also commence on Ohmgebirge’s definitive feasibility study with the balance of funds raised to be used for working capital purposes.
“This capital raising is transformational for Davenport and we are delighted that this ambitious raising, representing the top end of the Directors’ target of A$8 to A$10 million, has been so overwhelmingly successful,” Dr Gilchrist said.
“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.”