Highfield Resources Ltd (ASX:HFR) has received firm commitments from institutional investors for the placement of shares at 52 cents per share to raise A$15 million.
In addition to the placement, the company has launched a share purchase plan (SPP) to raise an additional $4 million, under which eligible shareholders will have the opportunity to participate in the equity raising initiative.
Strong support from institutional investors
Highfield's A$15 million placement received strong support from both existing as well as new institutional investors and was oversubscribed.
Proceeds from the placement will provide a runway to pursue project finance and other strategic alternatives to complete the construction funding of the Muga Potash Project in northern Spain.
The company plans to spend the proceeds from the placement to fund the purchase of long-lead items and other site infrastructure including power supply.
Highfield managing director Ignacio Salazar said: “We are pleased to announce the completion of the placement, which was well supported by existing and new institutional investors.
“We welcome all new shareholders to the Company and thank existing shareholders for their ongoing support.
“Highfield is now well-funded and following the recent award of the critical mining concessions, the company has a solid platform for development with a view to starting early works at Muga in Q4 2021.”
Muga Potash Project
Highfield’s flagship potash project spans roughly 60 square kilometres across Spain’s Navarra and Aragón regions and is poised to become the next major European potash mine.
The project is unique with shallow mineralisation and no aquifers above it and therefore there is no need to build a shaft.
There is quality and readily accessible infrastructure already in place in the region and is in the heart of a European agricultural region, which has a clear deficit in potash supply.
The company has already received the mining concession, the last remaining government permit needed, and is progressing the pre-construction phase of its flagship project.