Yankuang Energy Group (600188.SH) intends to acquire Highland Resources to access high-quality potassium mine resources in Spain.

Yankuang Energy Group (600188.SH) announced that the company plans to contribute the principal and interest of shareholder loans to Yancoal Canada Resources Co., Ltd. ("Yancoal Canada") and its wholly-owned subsidiary Yancoal International (Holdings) Co., Ltd. ("Yancoal International") by using its 100% equity stake in Yancoal Canada, and also to subscribe to shares of Highfield Resources Limited ("Highfield Resources", stock code: HFR) through a targeted issuance of new shares with a cash investment not exceeding 90 million US dollars. Highfield Resources, registered in Australia and listed on the Australian Securities Exchange in February 2012, is primarily engaged in the development of potash fertilizer projects. Its core project is the Muga project in northern Spain. Additionally, Yancoal Canada is a foreign wholly-owned subsidiary established by Yankuang Energy Group in 2011, located in Saskatchewan, Canada. It is engaged in potash exploration and development, holding the Sopha project and four other potash mining rights. The Sopha project mainly produces potassium chloride fertilizer. After the completion of this transaction, the company will become the largest shareholder of Highfield Resources and control the board of directors. Through Highfield Resources, the company will hold the Muga project, Sopha project, and several other undeveloped reserve projects. Upon completion of the Muga and Sopha projects, Yankuang Energy Group will have an annual production capacity of 3.8 million tons of potash salt, transitioning from single coal mining to multi-mineral development.