Highfield Resources Ltd (ASX:HFR) has completed the unconditional component of its institutional share placement, part of a US$220 million financing deal struck with Yankuang Energy Group Co Ltd and strategic investors.
Read: Highfield Resources inks agreements totalling US$220M to transition to global potash leader
The company raised a total of US$11 million at an offer price of A$0.2989 per share, with the US$5 million committed by EMR Capital Resources Funds conditional on shareholder approval.
Share purchase plan to follow
"Highfield is pleased to have received commitments for US$11 million in the institutional placement which saw the EMR subscriber and a combination of new and existing institutional investors participate,” Highfield Resources CEO and managing director Ignacio Salazar said.
“Highfield is looking forward to offering eligible shareholders the opportunity to participate in its share purchase plan which opens on 3 October 2024.”
The SPP will be made available to existing shareholders with a registered address in Australia or New Zealand.
The funding will underpin the development of the Muga Potash Project in Spain, which has secured all permits and key licences.
Muga is a particularly low-cost project with unusual characteristics – the mineralisation is shallow, with no aquifers above it and no need to build a shaft.
With easy access to the heart of Europe’s agricultural industry, and a clear deficit in potash supply following restrictions on Ukrainian and Russian exports due to conflict between the two countries, Muga is well positioned to become a significant producer of potash for the EU market.