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(Sharecast News) - Atome said financing for its flagship low-carbon fertiliser project in Paraguay is nearing completion, as the company continued to push towards a final investment decision by the end of the year.
The AIM-traded firm said the Villeta development, designed to produce 260,000 tonnes of low-carbon fertiliser annually at a cost of $630m, was intended to be the world's first industrial-scale green fertiliser plant.
It said lender engagement remained strong, with definitive loan agreements now at an advanced stage subject to final documentation and the closing of an equity funding package.
Atome added that a motivated equity consortium was in the final stages of formation, with documentary work underway.
The company said it was acting as developer, sponsor and operator of the project.
Chief executive Olivier Mussat described the financing process as a milestone for the sector.
"Structuring the financing for the world's first industrial-scale green fertiliser plant will be a pioneering achievement," he said.
He noted that coordinating partners across three continents was complex but necessary to establish "the most robust financial foundation possible for the project's lifespan and [to set] the blueprint for future projects."
He added that achieving FID would serve as a "springboard" for Atome's pipeline of developments, including its Atome Power division.
Mussat said the company remained focused on delivering FID at or around year-end.
"We are maintaining our challenge to our financing partners to achieve FID in or about the end of this year and working with them 24/7 to achieve this goal."
At 1503 GMT, shares in Atome were down 5.24% at 45.01p.
Reporting by Josh White for Sharecast.com.
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