Mina Muga completes its financing after incorporating new...

Mina Muga completes its financing after incorporating new strategic partners

The new group of investors, among which is Yankuang Energy Group, one of the largest energy companies in China and Australia, will contribute 220 million dollars (198 million euros) to the project located between Navarra and Aragon, as reported by the mining company this Friday. This agreement also includes the acquisition of a new potash asset in Canada, called Southey.

JESÚS JIMÉNEZ
Pamplona - July 19, 2024 - 11:39


The start of works is scheduled for the summer of 2024. (Photo: archive)

Highfield Resources has signed letters of intent with several strategic partners for an amount of 220 million dollars (198 million euros), which is the sum necessary to complete the financing of its main Mina Muga project in Navarraand Aragon , its managers announced this Friday. through a statement.
In the same operation, the acquisition of a new potash asset in Canada , called Southey , is contemplated . "This operation represents the diversification of Highfield Resources' asset portfolio with the potential to turn it into a company that competes globally in the production of potash," the mining company indicated.
Among the new investors is Yankuang Energy Group , one of the largest energy companies in China and Australia, with assets worth $50 trillion (more than €45,000 billion). On the other hand, the arrival of the new funds adds to the agreements previously reached by Highfield with European banks for a syndicated loan of 320 million euros granted by Société Générale, ING Bank NV, BNP Paribas SA, Natixis, Caja Rural de Navarra and HSBC Continental Europe.
The agreement finally contemplates the purchase of the Southey Potash Project, currently owned by Yankuang Energy Group, which will be financed via the issuance of shares. Southey is a potash project located in Saskatchewan (Canada), which has an estimated life of 65 years and already has the corresponding environmental permit.

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I can’t see what the issue price is. But it looks like a highly imaginative deal with the Canadian acquisition being the kicker, straight out of left field. Very astute regional diversification.