European potash developer, Highfield Resources Limited (ASX.HFR) (Highfield, or the Company) is pleased to provide the market with an update on activities developing the world class Muga Potash mine (Muga, or the Project), located in Spain, for the September 2023 quarter.
- Major focus on completing remaining phase 1 funding, working with financial advisors, Macquarie bank, Clarksons Securities and Endeavour Financial in negotiations with numerous parties encompassing strategic partnerships, non dilutive royalties, equity and offtake agreements
- The Company is currently updating its base case economic model for Muga and an update to the market will be provided once completed. The Company expects the headline numbers to be generally in line with the previous feasibility study
- Potash (MOP) market dynamics showing positive outlook indicators with prices forecast to increase. Growing need for supply diversification following increasing geopolitical tensions
- Land expropriation process successful with land access secured for the Project
- Preliminary works necessary prior to start of the main construction progressed during the Quarter, some of them carried out in the recently expropriated lands
- Construction of main facilities now planned to start in early 2024
- A$16.4M cash at bank at 30 September 2023.
For full details, see ASX release: https://bit.ly/46Qf4q7
About Highfield Resources
Highfield Resources is an ASX listed potash company which is focusing on the construction of its flagship low cost, low capex Muga Project in Spain having now received all permits and key licences needed. With the Mining Concession being granted in July 2021, the ramp construction licence in Aragón in June 2022 and the process plant construction licence in Navarra in March 2023. Following the finalisation of the initial site preparatory work of the mine gate and decline area, full scale construction is expected to commence in early 2024.
Muga is a unique project – with shallow mineralization with no aquifers above it there is no need to build a shaft. There is quality and readily accessible infrastructure already in place in the region and importantly, the Muga Project is located in the heart of a European agricultural region which has a clear deficit in potash supply. In addition to Muga’s secure southern European location, since February 2022 events in Russia and Belarus have heightened the awareness of the strategic value of the Muga Project for both Spain and the European Union.
Highfield’s potash tenements (Muga-Vipasca, Pintanos, and Sierra del Perdón) are located in the Ebro potash producing basin in Northern Spain, covering an area of around 250km2.
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