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Highfield Resources signs MoU for potash offtake from Muga

Highfield aims to mine relatively shallow sylvinite beds covering around 60 square kilometres within the Muga Project.

Highfield Resources Ltd - Highfield Resources signs MoU for potash offtake from Muga
The MoU is with Keytrade AG, a large Swiss based agri-trader

Highfield Resources Ltd (ASX:HFR) has signed a non-binding memorandum of understanding (MoU) with Keytrade AG regarding an offtake agreement for the Muga Potash Project in Spain.

Under the MoU, Highfield can provide Keytrade up to 300,000 tonnes per annum of muriate of potash (MOP).

Highfield noted the future potential partnership with Keytrade will provide it with enhanced insights into the MOP market which will be invaluable in the first years of production.

The company continues to engage in ongoing offtake discussions with other wholesale customers, distributors and global traders.

MoU is a vote of confidence for Muga

Highfield’s chairman Richard Crookes said: “The signing of another offtake MoU is a very important step in solidifying Highfield’s commercialisation strategy.

“In addition, it is further recognition by the market of the importance of the Muga Mine in the global and local MOP supply space.

“Keytrade brings many years of experience and a large global network that will be extremely valuable to Highfield.”

$40 million cash in the bank

Highfield entered 2020 with $40 million cash in the bank and continues to preserve cash whilst at the same time committing to the expenditure required for permitting and project optimisation activities.

Plans for the Muga Project in the current March quarter include submitting the mining concession to the Spanish authorities and continuing work to secure the mining concession and construction permits.

Other work at Muga includes project optimisation, advancing offtake discussions, and developing the sales and marketing strategy.

Quick facts: Highfield Resources Ltd

Price: 0.64 AUD

ASX:HFR
Market: ASX
Market Cap: $210.9 m
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