Highfield Resources (ASX:HFR) has entered into an agreement with a banking syndicate consisting of Banco Santander, BNP Paribas, Société Générale and ING whereby the latter will provide up to 222M EUR in debt to fund up to 65% of the total capital expenditures of the Muga potash mine.
Whilst this obviously is a good step and an important catalyst, this announcement will only have any value after the company receives the necessary permits to start constructing the mine and operate it. In Spain, the main question and issue is to get the permits (in time) and whilst it’s great to see Highfield has already lined up the financing for this project, securing the permits remains a key factor.
Disclosure: The author holds no position in Highfield Resources. Please see our disclaimer for current positions.