Highfield Resources Limited (ASX:HFR) has signed principal credit facility in relation to its previously announced senior secured project financing facilities for the company’s 100% owned Muga Potash Project in Spain.
The agreement is between Highfield, its Spanish subsidiary, Geoalcali S.L.U., and a syndicate of four international financial institutions acting as Mandated Lead Arrangers (MLAs). The Senior Facilities of up to €320.6 million will fund the construction and development Muga. The MLAs are BNP Paribas S.A., ING Bank N.V., Natixis CIB and Societe Generale (London Branch).
The Senior Facilities comprises two financing agreements:
* A Senior Debt Facility of €300 million to fund the construction and development of the Project; and
* A Cost Overrun Debt Facility of €20.6 million to be used, if required in the construction and development of the Project.
The company continues to make progress in discussions and negotiations with prospective strategic investors as well as progressing its €23.3 million equipment operating lease facility with Macquarie.
“We are delighted to announce the signing of the principal facility documentation for €320.6 million with BNP Paribas, ING, Natixis CIB and Societe Generale. With the signing of this documentation, the company has delivered on another key milestone in the financing strategy,” CEO, Ignacio Salazar, said.
Endeavour Financial is acting as financial advisor to the company.
About Highfield Resources
Highfield Resources is an ASX listed potash company which is focussing on the construction of its flagship low cost, low capex Muga Project in Spain having been granted the Mining Concession in July 2021 and the construction licence in Aragón in June 2022. Initial site works for the construction of the Muga mine gate and the two underground declines which commenced shortly thereafter are now well advanced.
Muga is a unique project – with shallow mineralization with no aquifers above it there is no need to build a shaft. There is quality and readily accessible infrastructure already in place in the region and importantly, the Muga Project is located in the heart of a European agricultural region which has a clear deficit in potash supply. In addition to its secure southern European location, since February 2022 events in Russia and Belarus have increased the awareness of the strategic value of the Muga project for both Spain and the European Union.
Highfield’s potash tenements (Muga-Vipasca, Pintanos, and Sierra del Perdón) are located in the Ebro potash producing basin in Northern Spain, covering an area of around 250 sq. km.
For further information please visit: https://www.highfieldresources.com.au/
