Highfield Resources (ASX: HFR) has secured an agreement to explore three Western Australian tenements for potash, and has now been admitted to the ASX after a successful IPO which offered 20 million shares at $0.20 to raise up to $4 million.
Highfield will hit the ASX boards at 1pm AEDT on Tuesday 7 February, with a little over 22 million shares on issue.
Importantly for the chances of success in the secured tenements, which are all hosted within the Canning Basin, potash has already been identified in a petroleum well previously drilled.
Information such as this will help Highfield identify high priority targets for the drilling program which will commence this year.
About the Canning Basin
The Canning Basin contains vast accumulations of Ordovician evaporite salt bearing sediments ranging from 600 to 2,000 metres deep, and up to 740 metres thick, considered prospective for economic potash mineralisation.
Highfield tenements are centred on the McLarty sub-basin where the prospective Mallowa Salt unit is interpreted to be about 640 metres deep.
Work completed so far
The company has already been busy at the tenements, having completed a review of published literature and previous exploration work for potash within the basin, while also assessing the exploration potential of the area.
Also completed is a review of previous interpretations of the distribution of the Mallowa Salt within the Canning Basin by reinterpreting seismic data integrated with petroleum well log data.