Advertisement

  1. ITV Report

£1bn funding plan announced for North Yorkshire potash mine

Photo:

Funding arrangements for a new potash mine in the North York Moors National Park creating more than three thousand jobs are expected to be approved by shareholders later this month.

Sirius Minerals wants to dig billions of tonnes of potash, a type of fertiliser, a mile below moors and the seabed near Whitby. The company announced today that it wants to raise a billion pounds to help fund the project by issuing shares and bonds.

Sirius expects to progress the project in two phases: the initial construction phase and the expansion phase.

The first phase is intended to achieve first production from the mine by the end of 2021 and a capacity of 10 million tonnes a year by mid-2024.

MP for Redcar Anna Turley said it was welcome news for her constituents.

This financing news is great for Teesside. Sirius Minerals’ polyhalite project is very well supported locally and we are looking forward to seeing the start of construction.

Sirius can become a significant business for both the area and the UK for generations to come and the jobs and investment they are bringing to Teesside are very welcome.”

– Anna Turley MP

In a statement the company said it represents a significant business investment in the UK.

I am delighted to announce this proposed fully underwritten financing package which – together with our new strategic investor, Hancock, announced last week – provides the comprehensive Stage 1 financing required to start construction of our North Yorkshire polyhalite project.

We thank existing shareholders for their continued support as well as the new institutional investors who recognise this unique opportunity to help develop what we believe to be the world’s largest highgrade known polyhalite deposit into a major low cost multi‐nutrient fertilizer business.

We are also pleased to provide an opportunity for our existing shareholders to participate via the Open Offer which is designed to reduce the dilution of this proposed fundraising via subscribing for new shares. In order for today’s proposed financing to be implemented, we will be holding a General Meeting on 25 November 2016, at which point the Company will be seeking shareholder approval.

This project will create jobs in North Yorkshire and Teesside, and represents a significant business investment in the UK. It’s been a long journey to this point, and we still have some way to go, but I want to thank everyone who has supported the Company in its efforts to reach this major milestone. Once we have received shareholder approval, we want to get on with the job of delivering this compelling value proposition, not only for our shareholders but also for the North Yorkshire community.”

– Chris Fraser, Managing Director and Chief Executive Officer