Highfield Agrees to Muga Project Finance Mandate With Four Major European Banks

Highfield Resources (ASX:HFR) announced that is has agreed a mandate with four major commercial European banks for financing the Muga potash project.
As quoted in the press release:

The banking syndicate consists of: BNP Paribas S.A., ING Bank N.V., Societe Generale Corporate & Investment Banking and Banco Santander S.A. (the “Mandated Lead Arrangers”).
Under the terms of the mandate, the Mandated Lead Arrangers will use best efforts to arrange the eight (8) year term facility and cost overrun facility (together the “Project Finance Facilities”) totalling up to €222m, representing a maximum debt to equity ratio of 65%. All four banks have received initial internal approvals on the basis of a detailed term sheet to participate in the Project Finance Facilities subject to confirmatory due diligence. Due diligence is expected to be completed in October 2015 enabling execution of definitive legal documentation shortly thereafter, prior to the commencement of construction of the Muga Mine in the December quarter of 2015.

Anthony Hall, managing director at Highfield, commented:

The mandate with the four European commercial banks provides a high level of confidence that the funding process will be completed prior to the commencement of construction at our flagship Muga Mine which we continue to target in the December quarter of 2015. The four banks have signed the mandate after receiving initial internal approvals to participate in a project finance syndicate.

Click here to read the full Highfield Resources (ASX:HFR) press release.