Highfield Resources received credit approval from Macquarie Group for an equipment operating lease facility that allows the company to purchase equipment with a total value of up to €27 million ($29.44 million), with the peak exposure not expected to exceed €25 million ($27.26 million).
The facility will provide lease financing for units of underground mining equipment to support Highfield’s Muga potash project and was obtained in addition to company’s €320.6 million ($349.34 million) senior secured project financing package. The facility remains subject to final contract and requisite conditions typical for a facility of this type, including the settlement of definitive documentation.
The receipt of credit approval follows a due diligence process undertaken by Macquarie in technical, social, environmental, tax and legal matters.
The term of the facility will be up to five years from the date of equipment commissioning on site. At the end of the term, Highfield will, at its own election, decide whether to: (i) purchase the equipment; (ii) extend the terms of the facility for the equipment; or (iii) return the equipment (subject to meeting return conditions).
“In addition to the €320.6 million [$349.34 million] project financing package signed in December 2022, obtaining credit approval from Macquarie on the operating lease financing is another significant milestone for the company as it moves into the construction phase of the Muga Mine following the receipt of its final construction license in March 2023,” Ignacio Salazar, CEO of Highfield, said.
