Highfield Resources (ASX:HFR) is in the process of transforming itself into a globally diversified potash company, following binding agreements with strategic investors Yankuang Energy, Beijing Energy, and Singapore’s Taizhong. The deal, announced in September 2024, includes a US$220 million equity capital raise and the acquisition of the Southey Potash Project in Saskatchewan, Canada115†source.
CEO Ignacio Salazar noted, “This transaction not only funds Phase 1 of the Muga project but positions Highfield as a leading global potash player. Our goal is to develop world-class projects across tier-1 jurisdictions, starting with Muga in Spain and now Southey in Canada.”
The Muga Potash Mine, located in northern Spain, is Highfield’s flagship project. With construction already underway, the mine is expected to begin production in the coming years. Despite a minor legal setback regarding the Goyo mining concession, which is expected to be resolved soon, the project remains on track.
In addition to its Spanish operations, the acquisition of the Southey project diversifies the company’s portfolio, enhancing its potential to supply potash to Europe and beyond. As of September 2024, Highfield has a strong cash position of $13.6 million.