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Potash developer Highfield Resources has welcomed two additional lenders to its senior secured project financing facilities of up to €320.6-million to fund the development of its Muga potash project in Spain.

The company on Monday said that HSBC Continental Europe and Caja Rural de Navarre have signed definitive documentation, joining the company’s fo0ur existing international financial institutions in the financing package.

“We are pleased to see additional banks joining our lending group. These are banks with an important presence in the natural resources sector and in the Spanish banking market, including in the Navarra and Aragon regions. We are delighted to partner with them as we move towards full project construction,” said Highfield CEO Ignacio Salazar.

An updated feasibility study for Muga estimated a capital cost of €436-million for the Phase 1 operation and €226-million for Phase 2. This was up from the previous estimate of  €398-million for the Phase 1 and €209-million for Phase 2.

C1 costs for the project have also increased from the €76/t estimated in 2021 to €91/t.

The mine plan for the Muga has been maintained with the project expected to have a 30-year mine-life and Phase 1 of the operation producing 500 000 t/y of potash and Phase 2 increasing production to one-million tonnes a year.