leadf
logo-loader
viewDavenport Resources Ltd

Davenport Resources completes transformational A$10 million share placement to advance German potash projects

The company has received firm commitments for the placement shares at an issue price of A$0.045 per share from a range of sophisticated and institutional investors, including existing shareholders, directors and new investors. 

Davenport Resources Ltd completes transformational $10 million share placement to advance German Potash Projects
The funds raised will allow the company to move forward with a confirmatory drilling program at the Ohmgebirge project

Davenport Resources Ltd (ASX:DAV) (FRA:D86) has completed a transformational A$10 million placement, putting it in a strong financial position to advance its portfolio of four standalone projects in the South Harz region of Germany with a combined 5.3 billion tonnes of potash resource, the largest potash resource in western Europe. 

The company has received firm commitments for the placement at an issue price of A$0.045 per share from a range of sophisticated and institutional investors, including existing shareholders, directors and new investors. 

"Overwhelmingly successful"

Davenport chief executive officer 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 A$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 program 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.”

Placement details

The company will issue 222,388,897 new fully paid ordinary shares at an issue price of A$0.045 per share in two tranches.

Participants in the placement will also be issued with one unlisted option for every two shares subscribed for in the placement exercisable at A$0.08 and expiring two years from their date of issue.

The first tranche will see the issue of 16,666,668 shares pursuant to its ASX Listing Rule 7.1A capacity and 8,333,334 options pursuant to its ASX Listing Rule 7.1 capacity to raise A$750,000.

In the second tranche, which is subject to shareholder approval at a meeting to be held in early January 2021, Davenport will issue a further 205,722,229 new shares and 102,111,114 options to raise around A$9.25 million.

The directors have agreed to subscribe for a total of 15,722,221 shares and 7,111,111 options as part of Tranche 2, subject to shareholder approval.

Tranche 1 shares will be issued on or around December 4, 2020, with Tranche 2 shares expected to be issued in mid-January 2021.

Euroz Hartleys Ltd in Perth and Cenkos Securities PLC (LON:CNKS) in London acted as joint lead managers.

Use of funds

The funds raised will allow the company to move forward with a confirmatory drilling program at the first of the projects, Ohmgebirge, to upgrade the classification of the 325 million tonnes at 13.14% potassium oxide for 43 million tonnes of potassium oxide 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.

Quick facts: Davenport Resources Ltd

Price: 0.055 AUD

ASX:DAV
Market: ASX
Market Cap: $11.8 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Davenport Resources Ltd named herein, including the promotion by the Company of Davenport Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Davenport Resources has 'size, quality and location all in one package'

Davenport Resources Ltd's (ASX:DVA) (FRA:NV9M) Ian Farmer talks to Proactive London about his reasons for joining the company - which he says has 'size, quality and location all in one package'. He explains the development planning progress for its large potash resource in the South Harz...

on 20/10/20

3 min read