Highfield Resources Ltd (ASX:HFR) has signed principal facility documentation for €320.6 million senior secured project financing for the Muga Potash Project’s development.
A syndicate of the four participating international financial institutions, including BNP Paribas (EPA:BNPP) S.A., ING Bank N.V., Natixis CIB and Societe Generale (EPA:SOGN) (London Branch) will act as Mandated Lead Arrangers (MLAs).
The funding will go to construction and development of the Muga Project in Spain, which holds an ore reserve of 104.3 million tonnes at 10.2% potassium oxide.
Key financing milestone delivered
"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,” Highfield Resources CEO Ignacio Salazar said.
“With the signing of this documentation, the company has delivered on another key milestone in the financing strategy.”
The terms of the senior facilities remain unchanged from previous announcements, and consists of two 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.