Highfield Resources Ltd (ASX:HFR) is seeking to raise up to $4 million in a Share Purchase Plan (SPP) available to eligible shareholders.
Highfield is a potash company that is focusing on developing its flagship low-cost, low-capex Muga Project in Spain.
Investors can acquire a minimum of $1,000 and up to, in aggregate, $30,000 of shares in Highfield at an issue price of $0.52 per share free from any brokerage or transaction costs.
The issue price represents:
- a 9.6% discount to $0.575 being the volume weighted average price of shares traded on the ASX over the five trading days up to, and including, Wednesday, August 4, 2021, which was the last day of trading of shares on the ASX prior to Highfield's announcement of the offer; and
- an 8.0% discount to the last closing price of $0.565 per share on Wednesday, August 4, 2021.
Same price as $15 million placement
The SPP issue price is the same as the recent placement to institutional and sophisticated investors, which raised approximately $15 million.
This oversubscribed placement received strong support from existing as well as new institutional investors.
Funds raised from the placement and SPP will be used to fund preconstruction activities at the Muga Potash Project, including:
- Early works and ground installations;
- Process plant;
- Ramps and underground galleries; and
- General working capital.
The offer is open from Tuesday, August 17, until the closing date of Friday, August 27. Shares will be issued on Thursday, September 2.