South Harz Potash (ASX:SHP) has entered an option heads of agreement to acquire the Glava Copper-Gold-Silver Project in southwestern Sweden, from McKnight Resources.
Under this agreement, South Harz will secure an exclusive option over the Glava 100 permit, ending either 30 days after its completed work program or 31 March 2026.
South Harz will pay $150,000 in shares at an issue price equal to the 20-day volume weighted average price at the time of exercise of the option.
During the option period, South Harz will be required to fund exploration activities at the project, including ground magnetics, surface sampling, GIS database establishment, and technical program for a total cost of $304,000.
The company has already completed a magnetic survey at the project under McKnight’s guidance.
McKnight will retain a 1.5% net smelter royalty over the Glava 100 permit.
The companies are also looking into applying for additional exploration permits, which McKnight will lodge for South Harz. South Harz will cover application costs to the Geological Survey of Sweden.
Executive Chairman Len Jubber says the acquisition will allow South Harz to leverage its footprint in Europe with assets in “one of the most geologically prospective and underexplored copper-gold provinces in Scandinavia”.
“This first step transforms South Harz into a diversified resources company, moving from a single asset company towards a broader regional platform,” Jubber says.
“While we maintain strategic patience with our large-scale South Harz Potash Project, we are broadening our portfolio to include metals essential to global supply chains and the energy transition.
“The Glava Project offers immediate discovery potential, hosting visible bornite, covellite, and chalcocite epithermal mineralisation with gold, silver, and tellurium in outcropping vein systems, including historic artisanal production of over 10% copper.”
South Harz Potash is a mineral explorer focused on developing Western Europe’s potash inventory in Germany’s South Harz potash district.
Sweden is recognised as an “attractive” jurisdiction for exploration and development, with an established infrastructure network, skilled workforce, and a commitment focused on developing critical minerals for the European energy transition.
According to Chambers and Partners, Sweden accounts for more than 90% of the European continent’s iron ore, as well as substantial proportions of its lead, zinc, silver, gold, and copper.
In 2019, Sweden’s real gross domestic product (GDP) increased by 1.3%. The nominal GDP was US$530.8 billion ($812 billion) and mining accounted for US$860.8 million or approximately 0.16% of Sweden’s GDP, as reported by the US Geological Survey.
Write to Maddison Elliott at Mining.com.au
Images: Unsplash
