Highfield Resources to raise $220 mln, buy potash project in Canada (updated)

Highfield Resources

24/09/2024 01:05

(Updates with details on the capital raise from paragraph 2
onwards)
       Sept 24 (Reuters) - Australian potash miner Highfield
Resources  HFR.AX  said on Tuesday it has entered into
agreements with China's Yankuang Energy  600188.SS  and others
to raise $220 million in a bid to transform itself into a
globally diversified potash firm.
    The company will issue shares to raise the amount, making
Chinese coal miner Yankuang Energy a majority shareholder upon
completion, Highfield said.
        The agreement also entails Highfield's acquisition of
the Southey potash project in Canada from Yankuang for $286
million, which will be paid via the issuance of company shares.
  
        The new shares will be issued at a price of A$0.50
apiece, reflecting a premium of nearly 67% to Highfield's last
closing price.
  
        Other strategic investors in the deal included Beijing
Energy International  0686.HK  and Singapore Taizhong Global
Development Pte.
  
        The capital raise is also expected to fully fund
Highfield's construction-ready Muga potash project phase 1, the
company said.
  

 (Reporting by Ayushman Ojha in Bengaluru; Editing by Shounak
Dasgupta and Alan Barona)
 ((Ayushman.Ojha@thomsonreuters.com))