Highfield Resources Ltd (ASX:HFR) shares traded as much as 8.9% higher intra-day after signing a €23.3 million non-binding indicative term sheet for an equipment operating lease facility with Macquarie for the Muga Potash Mine in Spain.
If executed, the facility will provide financing for the project’s various units of underground mining equipment.
The facility remains subject to contract and Macquarie completing its final due diligence and all requisite approvals.
Moving into construction phase
Highfield MD and CEO Ignacio Salazar said: "In addition to the €312.5 million project financing package recently announced, signing this non-binding indicative operating lease financing term sheet with Macquarie is another significant milestone for the company as it moves into the construction phase of the Muga Mine.”
€312.5 million facility
In May, Highfield inked a project financing mandate letter with a group of experienced European mining finance lenders for a €312.5 million senior secured project financing package.
The package includes a €300 million senior secured project financing facility and a €12.5 million standby cost overrun facility to finance the construction and development of its 100%-owned Muga Potash Project in Spain.
A group of four international financial institutions, comprising BNP Paribas S.A., ING Bank N.V., Natixis and Société Générale (London branch) will act as the mandated lead arrangers (MLAs).
The execution of the mandate letter follows the agreement-in-principle of the non-binding indicative term sheet for the facilities, which will cover a significant portion of the pre-production investment required to complete Phase 1 construction of Muga.