Highfield Resources Ltd (ASX:HFR) has signed definitive documentation from HSBC Continental Europe and Caja Rural de Navar to join the €320.6 million senior secured project financing package for development of the company’s flagship Muga Potash Mine in Spain.
In addition to the existing four international financial institutions acting as mandated lead arrangers, BNP Paribas (EPA:BNPP) S.A., ING Bank N.V., Natixis CIB and Societe Generale (EPA:SOGN), HSBC Continental Europe and Caja Rural de Navarra have joined the senior facilities as lenders.
Looking ahead, Highfield continues to make progress in negotiations with potential strategic investors and on the €23.3 million equipment operating lease facility with Macquarie.
Important presence
Highfield CEO Ignacio Salazar said: “We are pleased to see additional banks joining our lending group.
“These are banks with an important presence in the natural resources sector and the Spanish banking market, including in the Navarra and Aragon regions.
“We are delighted to partner with them as we move towards full project construction.”
About Muga
The Muga Potash Mine is a unique project with shallow mineralisation and with no aquifers above it there is no need to build a shaft.
The project is in the heart of a European agricultural region that has a clear deficit in potash supply with readily accessible infrastructure already in place
In addition to Muga’s secure southern European location, since February 2022 events in Russia and Belarus have heightened the awareness of the strategic value of the Muga Project for Spain and the European Union.