Shares of Highfield Resources Ltd rise after signing indicative term sheet for €23.3m facility with Macquarie for Muga potash mine

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Shares of Highfield Resources Ltd (ASX:HFR) traded up to 8.9% higher during the day after signing a non-binding indicative term sheet of 23.3 million euros for a facility equipment operating lease with Macquarie for the Muga potash mine in Spain.

If executed, the facility will fund the various underground mining equipment units of the project.

The installation remains under contract and Macquarie is completing its final due diligence and all required approvals.

Transition to construction phase

Ignacio Salazar, Managing Director and CEO of Highfield, said: “In addition to the recently announced €312.5 million project financing, the signing of this non-binding indicative operating lease financing term sheet with Macquarie is a another milestone for the company as it enters the construction phase of the Muga mine.

€312.5 million facility

In May, Highfield signed a project finance mandate letter with a group of experienced European mining finance lenders for secured project finance of €312.5 million.

The package includes a €300 million senior secured project finance facility and a €12.5 million reserve cost overrun facility to finance the construction and development of its owned Muga Potash project. 100% in Spain.

A group of four international financial institutions, comprising BNP Paribas SA, ING Bank NV, Natixis and Société Générale (London branch) will act as mandated lead manager (MLA).

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 part of the pre-production investment required to complete the construction of Muga Phase 1 .

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