Junior potash and salt developer Highfield Resources Ltd., Navarre, Spain, on March 31 announced that it has agreed to a nonbinding indicative term sheet with a group of experienced European mining finance lenders, including Société Générale, ING Bank NV, and Natixis, for a €300 million senior secured project financing facility and an additional €12.5 million cost overrun facility, resulting in an overall package for €312.5 million to finance the construction of its 100 percent-owned Muga Potash Project in Spain.
Highfield said the facilities will cover a significant portion of the pre-production investment required to complete the Phase I construction of Muga. In addition, the company said it has received strong interest from local Spanish banks who wish to participate.
In other news, the company reported that it has received Government of Navarra authorization to build an electric line to the mine site.