The York Potash project moved a step closer with the news it has received pre-qualification status from Infrastructure UK, a branch of the Treasury, for the second phase of the project.
While this does not constitute an offer of financing or an underwriting commitment by IUK, it could provide liquidity for the financing of the project.
Analyst Paul Smith at WH Ireland said: “This is an important step for Sirius and follows on from a lengthy period of discussion behind the scenes.
“IUK will undertake detailed due diligence alongside other senior debt investors, at the relevant time during 2016, but a HMT guarantee would help enormously with the planned second phase of funding.
“This is very encouraging for Sirius as it begins to answer questions on funding and helps make the project look even more attractive to the providers of debt.”