A string of operational and corporate highlights have formed the basis of the latest quarterly report from potash exploration and development company Davenport Resources (ASX: DAV).
The company said the three months to end March has seen it make significant headway in achieving its goals for the year, finalising access agreements with landowners and tenants for two new drill sites at its Ohmgebirge project in Germany and making improvements to its company structure.
The period kicked off with a media campaign in Germany where Davenport received “encouraging” high-level political feedback as well as grassroots support from the local South Harz community surrounding the project.
Drilling at Ohmgebirge aims to upgrade a 2019 JORC classification of 325 million tonnes at 13.14% potassium oxide for 43Mt of resource from inferred to measured and indicated categories.
Drilling pad design and environmental assessments of the new sites have now been completed and the company is in discussions with three contractors.
A provisional drilling permit application was submitted to authorities during the period and returned with two minor amendments.
Davenport said the formal application will be made on conclusion of landowner discussions.
Mobilisation of driller and rigs will take place once all approvals have been received.
A scoping study framework for Ohmgebirge started during the quarter, outlining the key components of the study program, external supports required and target completion dates.
Davenport said consultants will be engaged to commence preliminary work on the study while waiting for final drill core assays.
This approach is expected to minimise the time delay between the completion of drilling and finalisation of the scoping study.
The Ohmgebirge scoping study is expected to be funded by a $10 million share placement announced in November.
Proceeds of the placement will ensure Davenport is well-funded to advance its portfolio of four standalone potash projects in the South Harz region, which host a combined 5.3 billion tonnes of potash resource – the largest resource of its kind in western Europe.
During the period, Davenport completed the second tranche of the placement and ended the quarter with $8.8 million cash at hand.
Earlier this month, Davenport’s board resolved to change the company’s name to South Harz Potash Limited and will seek shareholder approval at an extraordinary meeting in May.
The name change is associated with the region in Germany which houses Davenport’s assets and with the intended end-product, and is believed to better represent the company’s business.
Shareholders will also approve a proposed share options scheme designed to add a performance-linked incentive component to the remuneration of board and senior management members.
Davenport said the scheme will be an “integral long-term element of the company’s remuneration architecture” and together with competitive salaries and short-term incentives, will help attract, retain, motivate and reward executive staff.