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  1. ITV Report

Shareholders vote for multi-million pound offer to protect Whitby potash mine

Shareholders voted at a meeting after Sirius failed to raise the funds it needed for the polyhalite fertiliser mine. Credit: ITV News

Shareholders have approved a multi-million pound offer which could protect the future of a North Yorkshire based potash mining project.

Sirius Minerals had warned that the Whitby mine could go into liquidation unless shareholders agreed to the offer from Anglo-American.

Shareholders voted at a meeting yesterday after Sirius failed to raise the funds it needed for its polyhalite fertiliser mine, forcing the board to recommend the £405 million rescue package.

Shareholders who attended the meeting at the Honourable Artillery Company in the City of London were told without supporting the deal, the company would collapse.

They were being asked to vote in favour of the 5.5p per share offer, despite some paying as much as 25p a share when the company was growing.

But before the votes - which were recorded on pieces of paper handed out at the start of the meeting, several angry investors voiced their concerns to the board.

One frustrated shareholder said he felt like "we're having a gun put to our head".

Chairman Russell Scrimshaw admitted it was a difficult time for all concerned, adding he was "disappointed at the abusive language" that he had read online before the meeting.

But the board backed the bid, saying it was the only option on the table.

ITV News Tyne Tees Correspondent, Rachel Bullock, has been following the story: