This sheds some light on the timing, specifically “(4) at the latest on the proposed transaction delivery date, Highfield Resources' existing convertible bonds must be converted”… the 21/1 ASX Ann in relation to the notes stated the maturity date as 22/6/25. It’s a translation, but I think it means when the deal goes through, they must convert EMR’s notes early, but in any case, it appears they have 11m max to wrap up the deal, presumably it will be much sooner this year though.
Yankuang Energy (01171.HK) is planning a strategic cooperation with Highfield Resources Limited.
On July 19th, GeLongHui reported that Yankuang Energy (01171.HK) and Highfield Resources Limited (a company listed on the Australian Stock Exchange with stock code: HFR.ASX, "Highfield Resources") are planning a strategic cooperation. The company intends to obtain newly issued shares of Highfield Resources through asset injection and cash subscription, become the largest shareholder of Highfield Resources after the transaction, and obtain control.
On July 19, 2024, the company and Highfield Resources signed a non-binding Letter of Intent for strategic cooperation. The main content of the Letter of Intent includes: (1) the company intends to transfer 100% equity of Yancoal Canada Resources Co., Ltd. ("Yankuang Canada") to Highfield Resources, and Highfield Resources will use newly issued common shares as transaction consideration; (2) in addition, Highfield Resources intends to issue new shares to several strategic investors including the company, plans to raise USD 0.22 billion, and the company intends to participate in the subscription with no more than USD 0.09 billion. If the subscription amount of other strategic investors exceeds USD 0.13 billion, the company's subscription amount can be correspondingly reduced; (3) after the completion of share swap and cash subscription, the company will become the largest shareholder of Highfield Resources, aiming to obtain the majority of seats on the board of Highfield Resources and control, and achieve consolidated financial statements; (4) at the latest on the proposed transaction delivery date, Highfield Resources' existing convertible bonds must be converted; and (5) the share swap and cash subscription transactions will be completed simultaneously, and are mutually-preconditioned.
The non-binding Letter of Intent signed this time is only a preliminary intention and has no legal binding force. This cooperation will not have a significant impact on the production, operation, and performance of the company until the transaction is completed. If the proposed transaction is successfully implemented in the future, it will help the company obtain high-quality potash resources, accelerate resource development, reduce the operation risk of Yankuang Canada, enhance the company's competitiveness, and benefit the company and all shareholders without damaging the interests of small and medium shareholders. After the above work is completed, the company will promptly analyze and disclose the impact of the proposed transaction on the company.
Also: Highfield Resources Limited is set to become a globally diversified potash producer through a strategic transaction involving a non-binding Letter of Intent with Yankuang Energy Group Co., Ltd. The deal includes a $220 million equity capital raising and the acquisition of the Southey potash project in Canada, which is expected to boost the company’s production capacity to 3.8Mtpa of MOP, positioning it as a top 10 global producer.
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