Highfield resources has announced that the engineering and design of its Muga project has progressed in line with its internal plan, and the company is ready to issue all necessary documentation to its construction partner. The key long-lead items, notably the bolter miner, have already been committed.
With the appointment of Endeavour Financial as its debt financial advisor, the company has begun to move forward with its financing strategy.
The company is in a position to proceed with the project as soon as the mining concession is granted; there will be no significant new financial commitments until that point.
The mining concession review process was split into five sections by the administrations. Four out of the five sections have been reviewed by the administrations and questions sent to the company with no relevant new issues raised. The company has already provided comprehensive and prompt replies on all of these four sections.
While restrictions generated by the Spanish Covid-19 crisis have not prevented the authorities’ progress, they made the process slower than expected. The authorities have informed the company that they will therefore not be in a position to send their questions on the fifth and final chapter until 2021.
However, to expedite the process as much as possible, the company has been advised by the administrations that they have split the remaining work, with Navarra focusing on reviewing section five, Aragon reviewing the answers submitted by the company on queries raised during the public exposition, and the authorities in Madrid starting to draft the final mining concession text.
The project is well advanced, in line with expectations, and it does not require any significant further development until the final stage of the mining concession process is completed. On that basis, the company plans to undertake additional cash preservation measures to ensure it continues to maintain a healthy cash balance and does not require additional capital until after the Muga mining concession is granted.
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