During the quarter, the company conducted a successful media campaign in Germany where it received encouraging high-level political feedback as well as grassroots support from the South Harz community.
This comes as a drill permitting application for its Ohmgebirge Project is in progress with the final submission to authorities expected after the conclusion of landowner discussions.
In addition, the scoping study structure and drilling pad design for the Ohmgebirge Project have been completed and the company intends to appoint and mobilise drillers immediately upon receiving the requisite approvals from the authorities.
“Made significant headway”
Davenport managing director Dr Chris Gilchrist said: “I am delighted to report that we have made significant headway in achieving our work program for this year.
“We have completed a highly successful media campaign for which we have received encouraging feedback from the regional government, local administrators and the community.
“We are finalising access agreements with the landowners and tenants for the two areas on which we intend to drill and following completion, we will submit our final application for drilling permission and mobilise the drillers in mid-year, as planned.
“We are also making significant capacity-building improvements to the general corporate structure and welcome a new and highly experienced non-executive director, Len Jubber, to the board.”
A$10 million placement
During the quarter the company completed the second tranche of a A$10 million placement announced in November 2020.
The funds will be used to conduct resource drilling and complete the scoping study for the Ohmgebirge Project.
Funds in the treasury on March 31, 2021, amounted to A$8,819,040.
Ohmgebirge mining licence area showing locations of 13 historic drillholes in blue.
New non-executive director
On March 1, 2021, Len Jubber was appointed to the board as non-executive director.
His appointment constitutes another building block in the development of the company’s world-class 5.3 billion tonnes portfolio of potash resources in Germany.
Jubber was chief executive of Bannerman Resources Limited (ASX:BMN) (OTCMKTS:BNNLF) (FRA:BH6), a uranium development company, for eight years with prior roles including chief executive of Perilya Ltd, a zinc and lead producer, and chief operating officer of OceanaGold Ltd.
In a mining career spanning more than 30 years, he brings a wealth of technical, commercial and corporate experience which will complement the current board composition.
In addition, Robert Van der Laan, who had been an interim executive director since September 2020, stepped down from the board on March 1, 2021.
Proposed name change
Davenport’s board of directors has resolved, subject to shareholder approval, to change the company’s name to South Harz Potash Limited and will seek shareholder approval at an extraordinary meeting of shareholders on May 4, 2021.
The 100%-owned German subsidiary has already been changed to SüdHarzKali GmbH and, if approval is achieved, the company will change its code to ASX:SHP.
This name change is planned to reflect the company’s Ohmgebirge, Mühlhausen-Nohra and Ebeleben perpetual mining licences and the Küllstedt and Gräfentonna exploration licences which are in the South Harz region of Thüringia, Germany, and collectively host a JORC 2012 inferred mineral resource of 5.3 billion tonnes at 10.8% K2O.
June quarter activities
The company plans to complete the following activities in the current quarter:
- Appoint and mobilise drillers after drilling permit is issued by authorities;
- Engage consultants to assist in compilation of the scoping study components
- Strengthen ESG capability; and
- Appoint UK-based chief financial officer (CFO).