The facility, first formalised in December 2022 with additional lenders joining in 2023, required Highfield to pay commitment fees. Its termination means no further such fees will be incurred.

The step comes as Highfield leans into cash‐preservation mode and seeks greater financing flexibility amid broader pressures facing the potash sector.

Highfield said it was committed to advancing Muga and was exploring funding options aligned with its strategy and current “cash preservation approach”.

Muga is a low-capex, high-margin potash venture located in the provinces of Navarra and Aragón in northern Spain. It covers about 46 km² targeting relatively shallow sylvinite beds, and has secured all major operating permits and key licences. 

Highfield arranged a senior project finance package of about €320.6-million from European lenders including BNP Paribas, ING, Natixis and Societe Generale to fund construction and overrun contingencies for Muga.

Highfield said that the termination was necessary to avoid accruing further commitment fees under terms which were no longer suited to its current cash flow prospects. In the meantime, management is prioritising alternative funding structures and maintaining operational readiness for the Muga project.

In mid-2024, the company announced a  transaction with Yankuang Energy Group and other strategic investors, including the acquisition of the Southey potash project in Saskatchewan, Canada.