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Highfield Resources continues to advance Muga Potash Project to construction

Following the granting of a positive environmental permit Highfield is now focusing on securing the mining concession and the construction permits necessary to take the Muga Project into the construction phase.

Highfield Resources Ltd - Highfield Resources continues to advance Muga Potash Project to construction
Highfield is well funded with $38.8 million in cash as at March 31, 2020.

Highfield Resources Ltd (ASX:HFR) is making progress with the approval process for the Muga Potash Project in northern Spain having completed the Mining Concession submission in March.

The company worked closely with key stakeholders to ensure all aspects of the submission were prepared to the satisfaction of the authorities and to ensure the documentation submitted is both robust and comprehensive with the aim of assisting a smoother approval process.

Following submission of the Mining Concession documentation, the Spanish Government initiated a countrywide confinement program due to the impact of COVID-19, with both Highfield’s employees and government officials working from home.

During this period the company is continuing regular engagement with all key authorities working on the Mining Concession.

Highfield previously estimated that the Mining Concession could be awarded about six months after the submission of the documentation submitted on March 13, 2020.

Although the company does not anticipate any delay to the receipt of the Mining Concession, it is possible that the COVID-19 outbreak could affect the ultimate award date.

Potash offtake deal

In February, Highfield signed a memorandum of understanding (MoU) with Keytrade AG regarding an offtake agreement for 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.

Shares are up 25% today to 34.5 cents.

Search for new CEO

The company’s international search for a new CEO is nearing completion.

A final shortlist comprises a diverse mix of highly experienced mining executives and an announcement is expected to be made in the near term.

Highfield chairman Richard Crookes continues as acting CEO to ensure a smooth transition

Plans for June quarter

Following the granting of a positive environmental permit, Highfield is now focusing on securing the mining concession and construction permits necessary to take the Muga project into the construction phase.

Highfield remains confident of securing the necessary debt and equity financing for Muga, which will support a final investment decision and the commencement of construction at the company’s flagship project.

Highfield’s plan for the current quarter includes:

  • Continue to maintain an open dialogue with all relevant authorities who are working on the submitted Mining Concession documentation.
  • Release of assay results for drill hole V18-05.
  • Continue project optimisation work and continue with detailed design.
  • Continue discussions with potential potash and salt offtake partners as part of the company’s sales and marketing strategy.

Quick facts: Highfield Resources Ltd

Price: 0.595 AUD

ASX:HFR
Market: ASX
Market Cap: $196.11 m
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