Junior potash and salt developer Highfield Resources Ltd., Navarre, Spain, this week reported that initial construction work has begun at its 100%-owned Muga mine project in Spain following the receipt of the construction license.
The company said the Townhall of Undués de Lerda in Aragón issued the license for the construction of the mine gate and declines.
Highfield earlier signed a construction contract with Acciona Construcción SA for these initial works, which cover fencing of the plot, installation of the above ground construction staff facilities, and clearing and stockpiling of topsoil. They also cover the excavation of the mine entrance; formation of embankments; and stabilization of the slopes with bolts and gunite (dry gun shotcrete).
Highfield CEO Ignacio Salazar said the company is working closely with the authorities, and especially with Navarra and Sangüesa, to finalize the licensing.
In other news, Salazar said Highfield is receiving “a significant endorsement” from leading international banks in the financing process “in this time of extreme geopolitical instability around potash supply, especially in Europe.”
The company agreed to a nonbinding indicative term sheet in late March 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 the Muga mine project (GM April 1, p. 30).