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Highfield Resources Granted Additional Time For Capital Raising

Highfield Resources (ASX:HFR) has been granted a voluntary suspension pending details of a "significant capital raising".

The company said it expects the voluntary suspension will end when the anticipated announcement is released to the market before the start of trade on Friday, 13 June 2014.

Highfield has three potash development projects in northern Spain, which enjoy Capex and Opex advantages as the capital intensity of its main projects is at the lower end of the global peers.

Capex for the Javier mine is estimated at US$308 million for an average production of 860,000 tonnes of potash over a 20 year period.

This would deliver an after tax NPV of US$1.06 billion and an unlevered after tax IRR of 48.4%. EBITDA in the first year of full production is estimated to be US$235 million in CY2018.

The Javier project compares favourably with producers such as Intrepid Potash with a market cap of circa US$1.3 billion and trade at an 11x CY2015E EBITDA.

The halt will remain in place until the opening of trade on Thursday 12th June 2014, or earlier if an announcement is made to the market.

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