(Updates with details on the capital raise from paragraph 2 onwards)

Sept 24 (Reuters) - Australian potash miner Highfield Resources said on Tuesday it has entered into agreements with China's Yankuang Energy and others to raise $220 million in a bid to transform itself into a globally diversified potash firm.

The company will issue shares to raise the amount, making Chinese coal miner Yankuang Energy a majority shareholder upon completion, Highfield said.

The agreement also entails Highfield's acquisition of the Southey potash project in Canada from Yankuang for $286 million, which will be paid via the issuance of company shares.

The new shares will be issued at a price of A$0.50 apiece, reflecting a premium of nearly 67% to Highfield's last closing price.

Other strategic investors in the deal included Beijing Energy International and Singapore Taizhong Global Development Pte.

The capital raise is also expected to fully fund Highfield's construction-ready Muga potash project phase 1, the company said.

(Reporting by Ayushman Ojha in Bengaluru; Editing by Shounak Dasgupta and Alan Barona)

((Ayushman.Ojha@thomsonreuters.com))