Highfield Resources Ltd (ASX:HFR) (FRA:23H) investors have recognised the importance of being granted a Mining Concession for the Muga Potash Project in northern Spain with shares jumping as much as 16%.
National, regional and local administrations in Madrid, Aragón and Navarra have signed Mining Concessions covering the Fronterizo, Muga and Goyo sections of the Muga project.
The company will now focus on finalising the preparations for construction at Muga.
Shares have been as much as 16% higher to A$0.865 while the market cap pre-open was approximately A$$245.6 million.
"Massive step for project"
Highfield Resources CEO Ignacio Salazar said: “We are delighted to receive the grant of the Mining Concession. This is a massive step for the project which allows us to prepare construction.
"On behalf of the Highfield board, I would like to thank our shareholders for their continued support during this challenging period.
"I would also like to thank our staff and the administrations for their tireless work in reaching this significant milestone.”
Pre-construction
Although the company has been advancing preparations in the last few months, granting of the Mining Concession will now see it expedite key pre-construction activities.
These include:
- Completion of the construction agreement with the preferred contractor;
- Request to initiate the construction of the bolter miner;
- Finalising pending procurement of equipment; and
- Managing the local town hall construction licences.
In parallel with these activities, and together with Endeavour Financial, the company is also reviewing its financing options, for both debt and equity.
Salazar added: "Muga is a unique project and has the potential to deliver great benefits to all our stakeholders. We look forward to progressing the Muga Project into construction.”