Share placing launched by Sirius

the company behind the York Potash Project,​ Sirius Minerals​, has launched a share placing to raise around £15m to ​bolster its balance sheet ​ahead of two key planning decisions which are expected by the end of May.

The firm plans to issue around ​£​214.3​m​, or 11.2​ per cent​ of the share capital, at 7​p​ 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.​

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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.