THE BOURSE WHISPERER: Highfield Resources (HFR: ASX) has exited its farm-in agreement with Broadway Resources to explore the McLarty project, Western Australia so it can concentrate on its Spanish portfolio.
Highfield entered into the farm-in agreement with Broadway in November 2011 to explore three granted tenements contained in the McLarty project.
Under the terms of the farm-in agreement Highfield received an initial 10 per cent interest and a right to earn up to an additional 70 per cent of the project through spending certain amounts, by completing a drilling program and an independent calculated JORC Resource.
“After consideration and in consultation with Broadway, the Board has determined that the company wishes to focus exclusively on the company’s three 100 per cent-owned Spanish potash projects and has elected to transfer its 10 per cent interest in the McLarty project back to Broadway,” Highfield Resources said in its ASX announcement.
“In making this determination, the Board has recognised that the assessment and exploration completed on the Spanish assets since their acquisition in October 2012 have been extremely encouraging for the company and that the Spanish projects warrant the full commitment of all the resources of the company.”
Location of Highfield’s Javier, Pintano and Sierra del Perdón projects in Northern Spain. Source: Company announcement
Highfield’s Javier, Pintano and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain, covering a project area of around 200 square kilometres.
The Sierra del Perdón project includes two former operating mines.
Highfield recently raised funds to progress feasibility studies at both the Sierra del Perdón and Javier projects.