Qinghai Salt Lake’s $300M Equity Subscription Exclusivity Extended to September

Strategic Partnership Progress

Highfield Resources has announced an extension to the exclusivity period granted to Qinghai Salt Lake Industry Co., Ltd, a subsidiary of China Minmetals Corporation, for a significant equity investment. This move follows constructive discussions among the parties and reflects a shared commitment to advancing a strategic transaction that could reshape Highfield’s growth trajectory.

The cornerstone placement, valued at approximately US$300 million, is designed to accelerate development of Highfield’s flagship Muga potash project in Spain and the Southey potash project in Saskatchewan, Canada. The exclusivity extension now runs until 15 September 2025, or earlier if binding agreements are signed or Qinghai Salt Lake decides not to proceed.

Due Diligence and Negotiations Underway

Qinghai Salt Lake has committed to using all reasonable efforts to complete its due diligence by 15 August 2025 and to notify Highfield and its partner Yankuang Energy Group of its decision to proceed. Should Qinghai Salt Lake move forward, the parties will work towards finalising the key commercial terms and definitive transaction documentation within the exclusivity period.

Despite the progress, Highfield is clear that no binding agreements have yet been reached. The company cautions investors that the outcome remains uncertain and that the process is still subject to regulatory and shareholder approvals.

Advancing Global Potash Ambitions

Highfield’s Muga project is notable for its shallow mineralisation and strategic location in a European agricultural region facing potash supply deficits. The project benefits from existing infrastructure and key permits, positioning it for efficient development. Meanwhile, the proposed acquisition of the Southey potash project in Canada complements Highfield’s ambition to become a globally diversified potash producer.

The involvement of Qinghai Salt Lake, China’s largest potash producer, signals a potential strengthening of Highfield’s strategic positioning and access to capital. The partnership could provide the financial backing necessary to expedite construction and development timelines.

Highfield has pledged to keep the market informed of material developments as these negotiations progress, underscoring its commitment to transparency and continuous disclosure.