Potash developer Davenport Resources (ASX: DAV) has posted a successful three-month period to June, underpinned by $1.29 million in capital raisings.
In April, the company announced it had received firm commitments from sophisticated investors for a placement of 8.4 million shares at $0.05 per share.
The price represented a 33% premium to Davenport’s last traded price of $0.035 per share on 6 April and a 22% premium to the 10-day volume weighted average.
The placement raised $420,000 before costs, of which $287,500 was issued on 23 April.
Another $50,000 will be issued shortly, with the remaining $82,500 issued following shareholder approval at the company’s general meeting this month.
As part of the placement, Davenport issued one option for every two shares issued.
The options have an exercise price of $0.075 and an expiry date of 31 July 2023.
Share purchase plan
In June, Davenport announced a share purchase plan which gave eligible shareholders the opportunity to acquire up to $30,000 worth of the company’s shares at $0.04 per share.
The plan raised $547,000 and was complemented by a further $325,000 from a placement conducted earlier this month.
Davenport said it will use the proceeds of its fundraising on advisory services, investor relations and working capital costs while it seeks to engage a strategic partner to develop its potash projects in Germany.
In May, Davenport appointed UK company Cenkos Securities as its regional corporate broker to increase its exposure to British and continental European institutional investors.
It was the latest step in the company’s plan to ensure it is well placed to access European investors while attracting potential development partners for its suite of potash projects.
In June, Davenport appointed Deloitte Corporate Finance to act as its financial advisor for a six-month term, providing support in discussions with potential partners including sophisticated investors, potash production companies and potash consumers.
Deloitte has since contacted some of these potential partners and Davenport has subsequently signed a number of non-disclosure agreements, the details of which are yet to be released.
During the quarter, Davenport also announced a board restructure with the appointment of Dr Reinout Koopmans as interim non-executive chairman.
The restructure will ensure the company has the skills and experience to attract a development partner for its European potash projects.
Dr Koopmans has considerable experience in investment banking including a role at Deutsche Bank, where he was responsible globally for public equity raising for natural resource companies. He was also part of the European equity capital markets team at Jefferies International.
Prior to that, Dr Koopmans was a management consultant with McKinsey & Co in Germany and South East Asia.
The company said it has commenced a global search for a permanent chairman and expects to make other changes to its board in the coming months.
Davenport owns a portfolio of potash opportunities including the Ohmgebirge, Ebeleben and Nohra-Elende projects in the South Harz region of Germany and is in discussions with potential project partners and other stakeholders to progress their development.
Subject to partner discussions, Davenport expects to drill two twin holes at the Ohmgebirge mining licence area close to corresponding historic holes.
The results from these holes and the existence of potash from core inspection will be used to confirm an indicated resource for the project.