Equity component for Muga secured (By Bell Potter)

Capital raise accounts for bulk of Muga equity funding HFR has completed a capital raising of A$101m via a share placement of 56.125m shares at A$1.80/sh. The funds raised have increased HFR’s net cash balance to c.A$120m. This amount is expected to provide the bulk of the equity component of the US$256m pre-production capital expenditure of for the company’s flagship Muga Potash Mine in northern Spain. The balance of project funding is to be sourced via debt from a consortium of European banks, from which indicative term sheets have been received. Completion on financing and receipt of final permits is expected later in CY15, allowing construction to commence by end CY15 or early CY16.

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