Highfield Resources closes $220 million deal to finance Muga Mine

Highfield Resources has reached a $220 million agreement with Yankuang Energy, Beijing Energy and Taizhong to finance the flagship Mina Muga project in Aragon and Navarra. The official signing ceremony took place in Pamplona on Monday, attended by senior executives from the companies involved, including Shandong Energy Group Chairman Li Wei and Yankuang Energy Group CFO Zhao Zhiguo. Highfield Resources was represented by CEO Ignacio Salazar, along with Directors Paul Harris and Roger Davey. Representatives from 
Beijing Energy and Taizhong participated virtually, as did Owen Hegarty, Chairman of Highfield’s current shareholder EMR Capital.

The transaction represents the consolidation of this initiative and includes the acquisition of a new potash asset in Canada, called Southey. This is an example of the diversification of Highfield Resources asset portfolio with the capacity to turn it into a company that competes globally in the production of this substance.

“This is an exceptional result that allows us to begin the full-scale construction of Muga and transforms Highfield into a company with global reach and great growth prospects. We are proud to have reached an 
agreement with organizations of the size and reputation of Yankuang Energy, Beijing Energy and Taizhong. Once this agreement is completed, we will have the projects, the team and the capital to make the Muga and Highfield project a great success ,” said Ignacio Salazar.

The Government of Navarra has stated that “this agreement arises within the framework of the effort made by the Government of Spain to maintain a constructive willingness to dialogue and cooperate with China, highlighting Spain ‘s commitment to developing a positive agenda and seeking consensual solutions that benefit all parties, including Europe.” This significant advance in the implementation of Muga, with the commitment of financing from Chinese partners, is the materialization of this type of synergies that are beneficial for all parties,” they add.