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Highfield Resources appoints Endeavour Financial as debt financial advisor for Muga Potash Project in Spain

Published: 12:38 30 Nov 2020 AEDT

Highfield Resources Ltd -
Endeavour is a leading independent advisor

Highfield Resources Ltd (ASX:HFR) (FRA:23H) has appointed Endeavour Financial as financial advisor to support the project financing of its flagship Muga Potash Project in Spain.

Endeavour is a leading independent advisor dealing exclusively with the natural resources sector specialising in the junior to mid-tier market, providing advice on financing projects from multiple funding sources.

The Endeavour deal team offers more than 160 years of mining finance experience and since 2003, has raised more than US$4 billion for junior and small cap mining companies in debt financing as well as acting as an advisor to US$28 billion in JV/M&A related financings.

“Important step”

HFR chief executive officer Ignacio Salazar said: “As the company continues to make progress on the engineering and permitting front, appointing Endeavour as our debt financial advisor is another important step forward towards building the Muga mine.”

In 2016, Highfield had received credit approval for a total of €185 million subject to satisfactory documentation and several conditions precedent to signing.  

Since that time, the company has considerably derisked the project and potash market fundamentals have improved.

The company aims to achieve a better debt package as part of the overall financing strategy of the project.

Key joy miner bolter secured

Highfield’s wholly-owned Spanish subsidiary Geoalcali SLU is securing a Joy miner bolter from Komatsu to play a key role in developing the Muga Potash Project.

The company has signed a contract with Komatsu Mining Corp for the purchase of the equipment, which will be used initially to develop underground access declines.

This represents a commitment of approximately €5 million and is a major step in the process of building the mine at the project.

HFR plans to build the underground access of the Muga deposit with one miner bolter and two leased road-headers.

Having two different types of excavation equipment will provide operational flexibility and reduces construction risk while the additional leased machinery supports the company’s cash preservation objective.

Highfield Resources updates feasibility study in strong potash market

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on 8/11/23