PERTH (miningweekly.com) – ASX-listed Highfield Resources on Monday announced plans to raise A$19-million through a share placement and share purchase plan (SPP) to fund pre-construction activities at its Muga potash mine, in Spain.
Highfield has received firm commitments for the placement of 28.8-million shares, at a price of 52c each, to raise an initial A$15-million. The placement will be undertaken under Highfield’s existing placement capacity, and will not require shareholder approval.
The placement price of 52c a share represented an 8% discount to Highfield’s last closing price on August 4, and a 9.6% discount to the company’s five day volume weighted average share price.
In addition to the share placement, Highfield will also undertake an SPP, at the same price, that would allow shareholders to subscribe for up to A$30 000 worth of additional new shares in the company.
The SPP is expected to raise a further A$4-million, and will close on August 27.
Highfield MD Ignacio Salazar on Monday said that the company was now well funded to follow the recent award of the critical mining concession, and had a solid platform for the development of the Muga project, with the view to starting early works by the fourth quarter of this year.
At full production the Muga mine will produce one-million tonnes of muriate of potash (MOP) and one-million tonnes of salt per year.
The phase 1 project would require a capital investment of €368-million and Phase 2 capital cost of €208-million. Phase 1 will produce 500 000 t/y of MOP, while Phase 2 would add an additional 500 000 t/y of MOP