Highfield Resources Ltd can proceed with the acquisition of Yancoal Canada Resources following the expiry of the prescribed period for notices under the Investment Canada Act.
As part of its implementation agreement with Yankuang Energy Group Co., Ltd, announced on September 24, 2024, Highfield has confirmed that no notice was received under subsection 25.2(1) or subsection 25.3(2) of the Act within the required timeframe.
With this condition now satisfied, Highfield moves closer to completing the acquisition of Yancoal Canada, a key step in establishing a new globally diversified potash company.
FIRB approval
The news comes after a quarter in which secured a deal with Yankuang Energy Group Co., Ltd after receiving a statement of no objection from Australia’s Foreign Investment Review Board (FIRB) for its proposed subscription of up to US$376 million in Highfield shares at A$0.50 per share.
The FIRB approval fulfils a key condition in the broader strategic transaction, which includes the acquisition of the Southey potash project in Saskatchewan, Canada, and the associated equity placement.
Highfield is also updating the terms of its Senior Secured Project Finance Facility to better align with the development timeline of the Muga Project.
Additionally, the company is in negotiations with Macquarie Specialised Asset Services Ltd. to finalise an equipment operating lease facility of €25 million. The initial lease contract, valued at US$4.7 million, covers four Komatsu shuttle cars and is expected to be completed by January 31, 2025.
Read more: Highfield Resources progresses strategic transaction and financing for Muga Project