- Highfield Resources secured €320.6 million for the Muga Potash Project in Spain.
- The financing includes a €300 million Senior Debt Facility and a €20.6 million Cost Overrun Debt Facility.
- The Senior Debt Facility has a 10-year term, while the Cost Overrun Facility has a 5-year term.
- The financing was arranged by BNP Paribas, ING Bank, Natixis CIB, and Societe Generale.
Project Financing Secured
Highfield Resources Ltd has secured €320.6 million in senior secured project financing to fund the construction and development of its Muga Potash Project in Spain. The financing was approved by a syndicate of four international financial institutions: BNP Paribas, ING Bank, Natixis CIB, and Societe Generale.
Financing Structure
The financing package includes a €300 million Senior Debt Facility and a €20.6 million Cost Overrun Debt Facility. The Senior Debt Facility has a term of 10 years, while the Cost Overrun Facility has a term of five years. This structure ensures that the project has sufficient funds for both planned expenses and potential cost overruns.
Due Diligence and Approval
The Mandated Lead Arrangers (MLAs) conducted thorough due diligence before approving the financing. This process involved specialized consultants in technical, social, environmental, marketing, and legal matters. The comprehensive evaluation included site visits and assessments by independent experts.
Additional Financial Strategies
Highfield Resources is also negotiating with strategic investors and working on a €23.3 million equipment operating lease facility with Macquarie. These efforts are part of the company's broader financial strategy to ensure the successful development of the Muga Potash Project.
Market Impact
Following the announcement of the financing approval, Highfield Resources' shares rose by 12% to A$0.84, bringing the company's market capitalization to approximately A$292.34 million. This positive market response reflects investor confidence in the project's potential and the company's financial strategy.
