Highfield heads to Spain Kristie BattenWednesday, 27 June...

Highfield heads to Spain
Kristie Batten
Wednesday, 27 June 2012

POTASH explorer Highfield Resources has signed an agreement to acquire the Navarra potash project in an all-scrip deal which could be worth as much as $A30 million.

The tenements which make up the project cover 430 square kilometres in the producing Ebro potash basin in northern Spain.

The project is close to the Subiza mine, which produced around 200,000 tonnes per annum of potash between 1977 and 1996.

Subject to shareholder and market approval and due diligence, Highfield will issue the vendors 50 million ordinary shares to acquire 100% of the project.

At the current share price of 20c, these shares would be worth $10 million.

Highfield will also be required to issue 100 million performance shares to be converted into ordinary shares on completion of two project milestones.

The company said exploration licenses were in place and the first priority would be a drilling program to delineate a maiden resource.

The services of the existing in-country management team have been secured.

The vendor has nominated Minotaur Exploration founder Derek Carter and Pedro Rodriguez to join the Highfield board.

The company said it would provide more details of the deal in the notice of meeting to be sent to shareholders, including the timetable.

Highfield said it had $3.6 million cash and would use some of those funds for its new project.