ATOME PLC (AIM:ATOM) confirmed the successful constitution of the proposed equity partners club for its Villeta fertiliser project in Paraguay.
The equity structure relates to the US$630 million development of a low-carbon fertiliser plant with a planned capacity of 260,000 tonnes per year.
The company said the equity club is conditional only on final structuring and execution of definitive documentation at final investment decision, which is now targeted by the end of January. Both equity and debt funding will sit within a special purpose vehicle holding the Villeta project, it noted. The equity consortium is led by Hy24 and includes international institutions with experience investing in Latin America.
"We are a short step away from bringing Villeta, the world's first dedicated industrial-scale low-carbon fertiliser project, to reality," chief executive Olivier Mussat said.
He added: "ATOME has a great opportunity to gain significant value above and beyond the pre-money valuation of Villeta and we note that current market forces for fertilisers are moving in a very encouraging direction for the prospects of the company.
"With the key pieces now in place, we are focused on moving to close out FID and start building."
ATOME told investors it is now finalising financial structuring and negotiations with equity and debt providers ahead of declaring a final investment decision.