Spain Highfield Resources receives financing approval for Muga Potash project

HOUSTON (ICIS)–Spanish fertilizer firm Highfield Resources announced it has received credit approvals for project financing of up to €320.6m ($317.4m) to fund the construction and development of its Muga Potash project in Spain.

The funding was arranged from a syndicate of four international financial institutions acting as mandated lead arrangers (MLAs), which were BNP Paribas, ING Bank, Natixis CIB and Societe Generale.

Highfield said there will be a senior debt facility of €300m with a term of 10 years to fund the construction and development of the project.

There will also be a cost overrun debt facility of €20.6m with a term of five years to be used, if required at Muga. Closing of both facilities is subject to customary conditions.

Highfield said it continues to make progress in negotiations with strategic investors and on the €23.3m equipment operating lease facility with Macquarie.

“This milestone represents the conclusion of an intensive and extensive due diligence process which included site visits by the MLAs and independent experts conducting environmental, social, technical, marketing and legal evaluations of the project,” said Ignacio Salazar, Highfield Resources CEO.

“With the preliminary works around the mine-gate getting finalised, securing project finance was an essential step to move the construction of the project forward.”