Australian potash developer Highfield Resources' voluntary administration has further stoked uncertainty over the development of its 1.3mn t/yr Muga potash project in northern Spain.
The company announced the appointment of voluntary administrators on 7 September, prompting the Australian Securities Exchange to suspend trading in its shares because of concerns over its financial condition.
The move follows a prolonged legal dispute over mining concessions at Muga and comes less than a year after Highfield raised A$10mn ($6.45mn) from existing shareholders to support project activities and address issues related to a permit for the Goyo mining concession, although progress on the latter has been slow and the project has largely stalled. The latest news of the voluntary administration only adds to the uncertainty surrounding the project.
The administrators will be assessing funding, restructuring and potential sale options.
