Highfield Resources Ltd (ASX:HFR) continues to advance pre-development activities for the Muga Potash Mine in northern Spain and is progressing negotiations for the remaining funding to begin phase 1 construction.
Potash is a critical component of fertilisers, enabling much higher crop yields across arable land and reducing food insecurity globally.
The Muga Project is fully permitted and construction-ready, strategically located in the middle of European markets, which lost easy access to Ukrainian, Belarussian and Russian sources of fertiliser, some of the biggest producers in the global market.
Negotiations continue
HFR says it has made good progress with a combination of potential investors from a range of sources including offtake customers, equity investors, strategic business partners and royalty providers.
While there are no guarantees binding agreements will be entered into for Muga’s financing, HFR now expects to finalise negotiations in early to mid-third quarter this year.
Muga is positioned as a low-cost potash mine, with mineralisation close to surface and no local aquifers, meaning there will be no need for an access shaft.
The project is located close to high-quality infrastructure and within easy reach of end markets, in the heart of a European agricultural region which has a clear deficit in potash supply.