Highfield Resources Ltd (ASX:HFR) has taken recent capital-raising efforts to more than A$24 million (~US$16.38 million) after completing a share purchase plan (SPP) for funds of approximately A$2.06 (~US$1,380,200).
As well as the SPP, also boosting the capital raising has been the further issuance of shares under the unconditional component of Highfield’s institutional placement for an amount of US$4 million (~A$6 million).
Further commitments
This has seen further commitments from existing institutional investors at A$0.2989 per new share under the unconditional component of its institutional placement.
Funds raised by the pure-play potash company will be used to advance the flagship low-cost, low-capex Muga Potash Project in northern Spain.
The company is planning to commence full-scale construction of Muga having finalised the initial site preparatory work and having received all permits and key licences.
SPP
The SPP offer, which was announced to the market on Monday, September 23, 2024, closed on Tuesday, October 15, 2024, with valid applications totalling approximately A$2.06 million (~US$1,380,200) received from eligible shareholders.
New shares will be issued at A$0.2989 per new share, the same price at which shares were issued under the unconditional component of the institutional placement.
Approximately 6,891,936 new shares will be issued on Friday, October 18, 2024, and these are expected to commence trading on ASX on Monday, October 21, 2024.
Holding statements are expected to be dispatched on Monday, October 21, 2024, and SPP shares will rank equally with existing Highfield ordinary shares on issue.
Institutional placement
Under the unconditional component of its institutional placement, Highfield has received further commitments from existing institutional investors to subscribe for US$4 million (~A$6 million) worth of new shares at A$0.2989 per share in a top-up.
As a result of these additional commitments, the company has now raised US$15 million (~A$22.4 million) in the institutional placement.
US$5 million (~A$7.5 million) of this was committed by EMR Capital Resources Funds III, LP, acting by its general partner EMR Capital GP III Limited or its nominee, which remains conditional on approval of the company's shareholders at an extraordinary general meeting to be held in or around December 2024.
No shareholder approval is required for the issuance of the top-up shares as these are being issued in reliance on the company's available placement capacity under ASX Listing Rule 7.1.
The top-up shares are expected to be issued on October 18, 2024, and will rank equally with existing fully paid ordinary shares in Highfield as at their date of issue.
Morgan Stanley (NYSE:MS) Australia Securities Limited and DBS Bank Ltd. are acting as joint lead managers to the institutional placement.