Junior ASX-listed miner Highfield Resources Ltd., Navarre, Spain, said on Oct. 24 it has received credit approvals from a syndicate of four international financial institutions for a €320.6 million (approximately $321.3 million at current exchange rates) senior secured project financing package for the construction and development of its 100% owned Muga Potash Project in Spain.
Acting as Mandated Lead Arrangers, the four banks are: BNP Paribas SA, ING Bank NV, Natixis CIB, and Société Générale SA (London Branch).
The parties signed a nonbinding indicative term sheet for the financing facility in late March (GM April 1, p. 30).
The senior facilities will comprise a senior debt facility of €300 million, and a cost overrun debt facility of €20.6 million to be used, if required.
The term of the senior debt facility will be ten years, and the term of the cost overrun debt facility five years. Closing of the financing deal remains subject to customary conditions.
Initial construction work began at the Muga mine project in Navarre, northern Spain, in early July, following the receipt of the construction license (GM July 1, p. 29). A two-phased project, Muga is ultimately targeted to produce 1 million mt/y of potash, as well as salt.