14 January 2025 | Highfield Resources Limited (ASX:HFR, “Highfield” or “the Company”) is pleased to announce that Australia’s Foreign Investment Review Board (FIRB) has issued a statement of no objection to Yankuang Energy Group Co., Ltd’s proposed subscription of up to US$376 million in Highfield shares (at A$0.50 per share), marking a significant step in their transaction.
Key Highlights
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FIRB’s decision means that a key condition is satisfied for Highfield’s transformational transaction with Yankuang Energy, which comprises:
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A US$220 million equity capital raised coming from Yankuang Energy and other investors.
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The acquisition of the Southey Potash Project in Saskatchewan, Canada, from Yankuang Energy’s subsidiary, Yancoal Canada, which is valued at US$286 million.
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Ignacio Salazar, CEO and Managing Director of Highfield Resources, stated: “This positive result from FIRB is another major step in getting the deal to Completion. FIRB’s timely approval is the result of presenting a solid application. The Company is making significant progress with regards to the other jurisdictional approvals for the Transaction.”
For further information, please contact:
Ignacio Salazar
CEO & Managing Director
[email protected]
Olivier Vadillo
Investor Relations – Global
[email protected]
Elvis Jurcevic
Investor Relations – Australia
[email protected]
About us:
About Highfield Resources Limited
Highfield Resources is an ASX listed potash company which is planning on commencing full scale construction of its flagship low cost, low capex Muga Project in Spain having finalised the initial site preparatory work and having received all permits and key licences. Muga’s Mining Concession was granted in 2021, the ramp construction licence in Aragón in 2022 and the process plant construction licence in Navarra in 2023.
Muga is a unique project – with shallow mineralization and no aquifers above it there is no need to build a shaft. There is high 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.
About Yankuang Energy and Yancoal Canada
Yankuang Energy is a joint stock company with limited liability incorporated under the laws of the PRC, with its H Shares and A Shares listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, respectively. Yankuang is principally engaged in mining, high-end chemicals and new materials, new energy, high-end equipment manufacturing and intelligent logistics. Yankuang Energy is a majority shareholder in ASX listed Yancoal Australia Ltd.
Yancoal Canada is a wholly-owned subsidiary of Yankuang Energy established in 2011 and located in Saskatchewan, Canada. Yancoal Canada is principally engaged in the exploration and development of potash and holds a 100% interest in the Southey project, a greenfield potash mine project and four other potash mining right.
Contact details:
Elvis Jurcevic
Investor Relations – Australia
[email protected]