- Potash company Highfield Resources (HFR) taps investors for $13 million to continue construction of its Muga project in Spain
- Emerging from a trading halt today, the company revealed it received strong demand for a share placement comprising 21.6 million new shares at 62 cents each
- The funds will help continue early work activities at the Muga mine and finalise debt funding, as the company looks to progress negotiations with strategic investors
- Highfield Resources began construction at the mine at the end of June, after receiving the construction licence for the mine gate and declines
- Shares in HFR are down 11.6 per cent trading at 61 cents at 2L45pm AEDT
Potash company Highfield Resources (HFR) has tapped investors for $13 million to continue construction of its Muga potash project in Spain.
Emerging from a trading halt today, the company revealed it received strong demand for a share placement comprising 21.6 million new shares at 62 cents each.
New and existing, domestic and international investors took up the new shares which were offered at a 10.1 per cent discount to the company’s last closing price of 0.69 cents on 7 December.
Participants will also receive one free attaching option for every two shares subscribed, exercisable at 93 cents and expiring 18 months from the issue.
The fresh capital is set to go towards continuing early work activities at the Muga mine, as well as helping to finalise debt funding arrangements as the company looks to progress negotiations with strategic investors.
Highfield Resources began construction at the mine at the end of June, after receiving the construction licence for the mine gate and declines.
The share placement represents six per cent of the company’s market capitalisation which CEO Ignacio Salazar said makes it a “minimally dilutive” placement, while providing
the company with a strong position to continue to move Muga forward, finalise the project financing and negotiate with strategic investors.
The new shares are due to be allotted in a single tranche on Friday December 16.
Shares in HFR were down 11.6 per cent trading at 61 cents at 2:45pm AEDT.