Highfield Resources (ASX:HFR) eyes $15m for Muga

• Spanish potash developer Highfield Resources (HFR) receives firm commitments to undertake a $15 million placement
• Roughly 28.8 million ordinary shares will be issued to institutional investors at 52 cents, a 9.6 per cent discount to the five-day volume-weighted average price
• Highfield will use the money to fund pre-construction activities at the Muga Potash Project which includes the purchase of site infrastructure
• The company will also be undertaking a share purchase plan to raise up to a further $4 million with eligible shareholders able to subscribe for up to $30,000
• Highfield ends the day 7.96 per cent in the red with shares trading at 52 cents

Spanish potash developer Highfield Resources (HFR) has received firm commitments to undertake a $15 million placement.

The company entered a trading halt on August 5 but did not disclose how much it intended to raise or what it would use the funds for.

Roughly 28.8 million ordinary shares will be issued to institutional investors at 52 cents.

This price represents an eight per cent discount to Highfield’s closing price of 56.5 cents on August 4 and a 9.6 per cent discount to the five-day volume-weighted average priced of 57.5 cents.

Canaccord Genuity and Foster Stockbroking will act as joint lead managers and joint book runners.

Highfield will use the money to fund pre-construction activities at the Muga Potash Project which includes the purchase of site infrastructure.

Money will also go towards corporate costs and general working capital.

Managing Director Ignacio Salazar commented on the placement.

“We are pleased to announce the completion of the placement which was well supported by exisiting and new institutional investors,” Mr Salazar said.

“Highfield is now well-funded and following the recent award of the critical mining concessions, the company has a solid platform for development with a view to starting early works at Muga in Q4 2021.”

Highfield will also be undertaking a share purchase plan to raise up to a further $4 million.

Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will be priced the same as the placement at 52 cents.

The plan opens August 17 and closes on August 27. Shares will be allocated on September 1 and be issued on September 2.

Highfield has ended the day 7.96 per cent in the red with shares trading at 52 cents in a $186.2 million market cap.