Special Report: Davenport Resources directors have topped up their shareholdings at a premium as the company advances what could soon be the largest potash resource in Europe towards production.
As part of a share placement that brought in $1.85 million, non-executive director Rory Luff subscribed for 1,428,571 fully paid ordinary shares at 7c each.
Executive Director Chris Bain paid the same price per share for 28,571 shares as part of an accompanying Share Purchase Plan that raised an additional $286,000.
Luff and Bain also received a corresponding number of free attaching options exercisable at 20c on or before 31 July 2023.
Shares in Davenport (ASX:DAV) – which has a large ground position in Germany’s South Harz Basin, once the world’s largest potash producing region – finished trading unchanged at 6c on Friday.
The stock has suffered from a lack of attention from Australian investors, leading the company to contemplate a European listing, possibly in London or Frankfurt.
Earlier this month, Davenport announced it had appointed London-based Bacchus Capital Advisers as a corporate adviser, ostensibly to assist with a listing and other corporate matters.
“Sitting here in Australia, not a lot of money is going to look at a small Aussie company with all its assets in Germany,” Bain told Stockhead at the time.
“It’s just not flavour of the month. So we have to look at ways of tapping ultimately into European investors.”
Davenport has earmarked the funds from the recent capital raising for continuing to covert historic resources on its perpetual mining licences in the South Harz, which were acquired from the German government, to JORC standard and to preparing for confirmatory drilling in early 2019.
In April, the Company announced a maiden inferred JORC resource of 576.6 million tonnes at 12.1% potassium oxide (K2O) for the Ebelen licence and is going through a similar resource conversion process with its nearby Muhlhausen-Nohra and Ohmgebirge licences.
If the exploration targets for those licences are realised, Davenport will lay claim to the largest declared potash resource in Europe.
Because the former German Democratic Republic potash mining company was so thorough in its collection of exploration data, upgrading the Inferred resource to Measured and Indicated categories is expected to require only minimal confirmatory drilling.
From there, the Company will seek to initiate feasibility studies into a mine development.
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