Yankuang Energy (SHA:600188, HKG:1171) will implement the acquisition of newly issued shares of Highfield Resources (ASX:HFR) through asset injection and cash subscription, according to a Monday filing with the Hong Kong Stock Exchange.

The transaction would see Yankuang becoming HFR's largest shareholder and taking control of the Australian potash miner's board, the filing said.

The Chinese coal miner will transfer 100% of subsidiary Yancoal Canada Resources' shares to Highfield Resources in exchange for new shares at AU$0.50 apiece, the filing said.

Highfield Resources will raise $220 million through a share issuance to certain investors, including Yankuang Energy, which will invest up to $90 million into the planned subscription.

Proceeds will be used to construct the Muga potash mine project and to add to Yankuang's liquidity.

The transaction is expected to be completed on March 31, 2025.

Shares in Yankuang jumped 3% in Hong Kong during Tuesday's morning trading.

Price (HKD): $14.35, Change: $+0.36, Percent Change: +2.57%