Sirius Minerals says there is ‘strong equity market support’ for fundraising to create giant Yorkshire mine

SIRIUS Minerals today said there was “strong equity market support” for fundraising to build a giant Yorkshire mine.

Work is underway on the Sirius Minerals' Woodsmith site near Whitby
Work is underway on the Sirius Minerals' Woodsmith site near Whitby

Sirius Minerals’ giant polyhalite Woodsmith Mine, near Whitby, is a £3.2bn capital investment project which is expected to generate £100bn for the UK economy over the next 50 years. Apart from creating 1,000, long-term, skilled jobs, the project is also set to support 1,500 jobs in the supply chain.

Sirius Minerals Plc announced on April 30 2019 the details of a placing and open offer to raise gross proceeds of around £327 million, in connection with its Stage 2 Financing requirements.

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In a statement, Sirius said: “The open offer closed for acceptances at 11 a.m. on May 20 2019 in accordance with its terms and was oversubscribed.”

Chris Fraser, managing director and chief executive, said: “We are encouraged by the oversubscribed open offer, which underlines the strong equity market support for our comprehensive markets-led solution for stage 2 funding.

“Today’s result takes us another step closer to bringing POLY4 to the global agriculture industry and I would like to thank shareholders and partners for their continued support.

“We now turn our focus to delivering the next phase of the funding package, with planning for the high yield bond well underway.”

The company’s Polyhalite product, POLY4, can be used to achieve balanced fertilisation around the world. Sirius Minerals’ shares are traded on the London Stock Exchange. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility.

Sirius Minerals has also made payments totalling £5m towards protecting the environment and enhancing skills. The contributions to North York Moors National Park Authority, North Yorkshire County Council and Redcar and Cleveland Borough Council form part of Sirius Minerals’ planning permission for its new mine and underground mineral transport system to Teesside.