Highfield Resources (ASX: HFR) is one of the more interesting IPO's in recent memory, and the market has acted positively to the company's Western Australian focused potash exploration plan.
Highfield has only had a couple of trades in its first few hours as a publically listed company today, but they have gone through at $0.30, providing a 50% premium to the $0.20 IPO entry price.
The company has secured an agreement to explore three Western Australian tenements for potash, after a successful IPO which offered 20 million shares at $0.20 to raise up to $4 million.
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.
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 to date
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.