Highfield Resources focused on developing world-class Muga Potash Mine in Spain
- Highfield Resources making strong progress toward construction at flagship Muga Potash Project
- Highfield Resources prepares to enter construction at flagship Muga Potash Project in Spain
- Highfield Resources presents spending plan for A$19m raise for Muga potash project
Quick facts: Highfield Resources Ltd
Price: 0.49 AUD
Market Cap: $178.57 m
About the company
Highfield Resources Ltd (ASX:HFR) is a potash company that focuses on its flagship low-cost, low-capex Muga Project in Spain.
The company’s potash tenements Muga-Vipasca, Pintanos and Sierra del Perdón are in the Ebro potash producing basin in northern Spain, covering an area of around 276 square kilometres.
Once in production, the project is forecast to be one of the highest margin potash mines in the world.
How it is doing
Promisingly, the company completed the final steps to secure mining concessions covering the Fronterizo, Muga and Goyo areas, which make up the Muga Project.
Looking ahead, Highfield intends to negotiate a construction agreement with construction partner Acciona and progress financial discussions to secure debt and equity funding.
In May 2021, Highfield’s subsidiary Geoalcali SLU received the last report required in the final section of the Mining Concessions (MC) from the environmental department of Aragón.
Highfield Resources Ltd (ASX:HFR) has raised $3.11 million in a share purchase plan (SPP) adding to the $15 million the company raised by issuing shares to institutional and sophisticated investors under a placement.
Last month, the company extended the closing date of the SPP by a week to Friday, September 3, 2021, to provide an opportunity for eligible shareholders facing COVID-19 related restrictions to participate in the offer.
The MoU complements a similar agreement with the Port of Pasaia, announced this month, and together, the ports in northern Spain will be key supply chain components for the Muga Potash Project.
Insight: Highfield Resources prepares to enter construction at flagship Muga Potash...
Highfield Resources Ltd is preparing to move into the construction phase at its flagship Muga Project in Spain after closing out the 2021 financial year.
The potash company spent the June quarter completing the final steps to secure mining concessions covering the Fronterizo, Muga and Goyo areas, which make up the Muga Project.
What management says
Highfield Resources Ltd (ASX:HFR)'s Ignacio Salazar joins Proactive's Katie Pilbeam after receiving firm commitments from institutional investors for the placement of shares at 52 cents per share to raise A$15 million. Highfield's placement received strong support from both existing as well as new institutional investors and was oversubscribed. Salazar takes viewers through the spending plan, with the proceeds providing a runway to pursue project finance and other strategic alternatives to complete the construction funding of the Muga Potash Project in northern Spain.
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