- Highfield Resources (HFR) signs a purchase contract for equipment needed to develop a process plant at its Muga Potash Mine in Spain
- The contract is with Weir Minerals to provide concentrate screens which will be used for the initial phase of the crushing, grinding and de-sliming processes
- With the contract signed, HFR has now secured 85 per cent of the planned equipment needed for the plant
- It expects the remaining 15 per cent to be formalised in the next few weeks
- Shares are trading 4.08 per cent lower at 47 cents at 3:03 pm AEST
Highfield Resources (HFR) has signed a purchase contract, taking a step closer to acquiring all equipment needed for its Spanish Muga Mine process plant.
HFR acquired the mining concession for the potash tenement in July and has been focused on construction.
The company believes the project is unique, with shallow mineralisation and no aquifers above it, therefore requiring no shaft to be built.
This latest contract is with Weir Minerals which is set to provide both the primary and secondary concentrate screens to be used for the initial phase of the crushing, grinding and de-sliming processes.
With the contract signed, HFR has secured 85 per cent of the planned equipment needed for the plant.
It expects the remaining 15 per cent, which includes cross-flow separators, dryers, thickeners and flotation columns, to be formalised in the next few weeks.
Following an $18.1 million capital raise, the company is reportedly well funded to finalise the purchase contracts of the remaining long-lead items.
Highfield said the completion of the procurement of the process plant equipment was key in allowing improvements to the detailed engineering design of the plant with the design of the specific equipment used.
CEO Ignacio Salazar said the contract with Weir Minerals was an important milestone as the company continued to develop Muga.
Shares were trading 4.1 per cent lower at 47 cents at 12:06pm AEST.