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Highfield Resources (ASX:HFR) Secures FIRB Approval for Major Investment

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Key Approval Secured

Highfield Resources Limited (ASX: HFR) has confirmed that Yankuang Energy Group Co., Ltd has received approval from the Foreign Investment Review Board (FIRB) for its planned investment in Highfield. This approval is pivotal for Yankuang Energy’s subscription for up to US$376 million of Highfield’s ordinary shares priced at A$0.50 each.

Transaction Overview

This investment is part of a larger strategy to raise a total of US$220 million in equity capital from both Yankuang Energy and other strategic investors. Additionally, Highfield aims to acquire the Southey potash project in Saskatchewan, Canada from Yankuang Energy, which involves the purchase of 100% of Yancoal Canada Resources for US$286 million.

Executive Comments

Ignacio Salazar, CEO and Managing Director of Highfield, stated, “This positive result from FIRB is another major step in getting the deal to Completion. FIRB’s timely approval is the result of presenting a solid application. The Company is making significant progress with regards to the other jurisdictional approvals for the Transaction.”

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Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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