...very much Carrie. Good afternoon to everyone in the Southern Hemisphere and good morning to those in the Northern Hemisphere. My name is Paul Harris. I'm the Chair of Highfield Resources Limited. On the line with me also this afternoon is Carles Alemán , our CEO based in Pamplona, along with Olivier Vadillo, who is Head of [Business] and Marketing. Thank you for joining this afternoon for a short note. We certainly appreciate all of our shareholders' continued support and interest in Highfield Resources Limited and our progress. I'm obviously speaking today to provide a brief update following the announcement released to the ASX regarding the decision by China Minmetals Corporation, otherwise known as CMC, and its subsidiary Qinghai Salt not to proceed with the proposed transaction outlined in our main announcement on their non-binding letter of intent.
I'm going to be fairly short because there's not an inordinate amount of information that can be released in relation to that decision, because everything else in relation to our project and our transactions remains intact. It will be a fairly brief conversation, and I do ask shareholders to contact the executives or myself as appropriate. We do understand that this raises important questions for investors, and we want to be as transparent as possible, both legally and commercially, in what this means and what we're doing now. As outlined in the release, following the conclusion of CMC's exclusive due diligence process, [CMC] and Qinghai Salt advised the company of their decision not to proceed with the proposed transaction, which was obviously non-binding.
The decision was made internally by CMC, and whilst we're not in a position to comment on CMC's specific reasoning, it's really important to note that this does not reflect any new information or any change in the fundamentals of [Muga] or Highfield . It's their internal decision process. The company, the board, the executives, we continue to have very high conviction in relation to the Muga project both technically and commercially. The fundamentals of the project remain intact, and the strategic rationale behind our efforts to develop Muga into a long-lived, low-cost European potash operation have not changed. There are a couple of questions that we've had that I'll try to address proactively. On the funding side, the company continues to actively manage its company needs and remains flexible in its approach.
We've done a lot of internal cost cutting over a period of time and work on different alternatives in relation to our funding proactively over some period of time. As a result Qinghai Salt's withdrawal, the convertible notes that we have on issue to EMR Capital and others have now matured. It's important to note that EMR Capital continues to engage with us very constructively, and they're trying to work through that. At the same time, they reserve their rights under the terms of those convertible notes. I will reiterate that EMR Capital are working very closely with us and are working constructively with us in regards to the maturity of those convertible notes. As we noted in the announcement, the implementation agreement with Yankuang, which is associated with the proposed transaction, has not been terminated. It remains. That's important for investors to understand.
It is important to note that under that implementation agreement, either party retains the right to terminate at any time. That includes ourselves and themselves if there's a change in direction for either party. That remains on foot and will be up to date in relation to that financing change. We're actually now evaluating next steps, and we remain committed to the strategic objectives that underpin the recent transaction discussions with a focus on delivering long-term value to shareholders. It's important that the Board wants to stress that we remain committed to the same strategic objectives that underpin the transaction discussions. We're actively evaluating strategic options that can deliver value to shareholders and enable us to advance the Muga project. We're maintaining a very disciplined approach to capital management, as I said earlier, project development, and also stakeholder engagement across Spain and internationally.
On that note, in relation to stakeholder engagement, I would note that on Monday morning, Carles and the Spanish team met with the government in the Barcrocs in Pamplona to explain CMC's actions and to discuss possible next steps with the government. The government has reiterated to us its support for Highfield Resources Limited and the Muga project, and we're now actively working with them in relation to our next steps. There have obviously been questions around the Goya, concerns, and we've also done an awful amount of work legally and are really confident in our alternatives in relation to the Goya permit and our discussions with government in that regard. Nothing's changed in that regard over the period of time that CMC has done their diligence, and we remain confident around the permit and our ability to proceed.
To summarize, the proposed transaction with CMC and QFL is no longer progressing, but what's important is the Yankuang implementation agreement remains on foot. The Muga project remains strong, and our commitment to delivering it has not changed. We thank you all for your continued support with Highfield, and we reiterate we will continue and inform the market on any material development. Obviously, this is disappointing, but we do have alternatives that we're working through, and when we have a material upgrade for shareholders, then we'll come back to market and let you know of those breakthroughs. Thank you all for your support, and please, certainly contact the team should you have any further questions. Thanks very much, Carrie.
That does conclude our conference for today. Thank you for participating. You may now return.