Highfield Resources Limited has signed definitive documentation with HSBC Continental Europe and Caja Rural de Navarra to join the former’s $525.15 million senior secured project financing package for the development of the Flagship Muga mine project.
The funds will support the construction and development of the Muga Potash Mine in Spain.
The terms of the senior facilities were previously announced on 30 March, and the first drawdown is expected to occur following the satisfaction of certain conditions precedent customary for financing transactions of similar nature.
Highfield said it continues to make progress in its negotiations with potential strategic investors and on the $38.16 million equipment operating lease facility with Macquarie.
BNP Paribas S.A., ING Bank N.V., Natixis CIB, and Societe General are also acting as mandated lead arrangers on the effort.
“We are pleased to see additional banks joining our lending group. These are banks with an important presence in the natural resources sector and in the Spanish banking market, including in the Navarra and Aragon regions,” Highfield CEO Ignacio Salazar said.
He added that the company is delighted to partner with the banks as the project moves toward complete construction.
