The firm plans to issue around £214.3m, or 11.2 per cent of the share capital, at 7p each, an 8.5 per cent discount on yesterday’s closing price of 7.65p. The firm is currently going through a lengthy planning approval process for the potential new mine. Further environmental information for its mine, mineral transport system and materials handling facilities applications was submitted to the relevant local authorities last month.
Sirius says it intends to build the first potash mine in the UK for over 40 years, in North Yorkshire.
The Directors want to ensure that the company remains in a strong financial position throughout the planning approvals process and beyond. Prior to the Placing, as at February 28, the company held cash and cash equivalents of approximately £12m. Two of the key planning decisions for the York Potash Project are expected by the end of May.