Highfield Resources Ltd has announced that Beijing Energy International Holding Co., Ltd (Beijing Energy) has received a statement of no objection from the Foreign Investment Review Board (FIRB) regarding its proposed US$50 million investment in Highfield through the purchase of ordinary shares at A$0.50 per share.
This investment forms a key component of Highfield’s ‘Cornerstone Placement’ and ‘Southey Vend-In’ transactions, as outlined in the company’s ASX announcement on 23 September 2024. Through these initiatives, Highfield aims to:
- Raise US$220 million in equity capital from Beijing Energy and other strategic investors; and
- Acquire the Southey potash project in Saskatchewan, Canada, from Yankuang Energy via the direct or indirect acquisition of 100% of Yancoal Canada Resources, a subsidiary of Yankuang Energy Group Co., Ltd, for US$286 million, subject to completion adjustments.
The FIRB approval marks a significant milestone in progressing the transaction and satisfies a key condition precedent under the deal’s documentation.
Investment Canada Act notice period expires without objection
Last week, Highfield announced it has cleared a key regulatory hurdle for its acquisition of Yancoal Canada Resources, following the expiry of the prescribed notice period under the Investment Canada Act.
Under its implementation agreement with Yankuang Energy Group Co., Ltd, announced on 24 September 2024, Highfield confirmed that no notices were issued under subsection 25.2(1) or subsection 25.3(2) of the Act within the required timeframe.
With this condition now met, Highfield moves closer to finalising the acquisition, a significant step in its strategy to establish a globally diversified potash company.