EMR serves as cornerstone for Highfield Resources placement

According to an Australian Securities Exchange filing, the Spanish potash developer is offering just over 56 million shares at A$1.80 apiece. The proceeds of the issue will be used to provide the equity component of $256 million in pre-production capital being raised for the company's flagship Muga Potash Project in northern Spain.

Highfield says it has completed a definitive feasibility study from Muga project which is expected to be a long-life, high margin operation with a very low pre-production capital expenditure requirement. Construction will begin later this year. 

EMR already has a 19% stake in the business. It first invested $10 million in the company over two tranches in 2013. It committed a further A$12.75 million the following year as a cornerstone investor in a A$32 million placement.

EMR Capital has reached a final close of $450 million on its specialist mining fund, beating the $400 million target, in February.

The fund, which is looking to tap into opportunities thrown up by the commodities downturn, will focus on copper, gold, coking coal and fertilizer potash. The new vehicle is said to have attracted mix of institutional investors including endowments and private investors.

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