Highfield Resources (ASX:HFR) has successfully completed a capital raise by issuing 56 million new shares at A$1.80 per share. This increases the company’s total cash balance to A$120M and puts Highfield Resources in a very strong position to fund a large part of its equity contribution for the A$330M Muga potash project in Spain.
Highfield’s share price is now trading at A$1.59, roughly 246% higher than the share price when we first discussed the company (down from a 52wk high of A$2.08 which was 352% higher). The company expects to receive its final permits later this year where after construction could start immediately funded by Highfield’s robust cash position meaning the company doesn’t have to wait for its debt package to be arranged before being able to start building the project.
Disclosure: The author holds no position in Highfield Resources. Please see our disclaimer for current positions.