Sirius announces £50m share placing to fund York project
Sirius Minerals is to try and raise £50m through a share placing to finance its potash project in York through to the end of a definitive feasibility study.
Sirius Minerals is to try and raise £50m through a share placing to finance its potash project in York through to the end of a definitive feasibility study.
Russell Scrimshaw, Chairman of Sirius, has indicated his intention to subscribe for approximately £3.4m of the new shares.
Sirius bought the York project in January 2011 and says since then assay results have been "better than expected".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The proceeds from the placing will be used to drill perhaps as many as 8 additional holes with a view to making a maiden resource announcement in April this year.
The price of the placing shares was not disclosed, with Sirius saying it will be announced "as soon as practicable after the close of the book-building process".
The books will close at 3pm in London today and the offer is not being underwritten. The company hopes the new shares will be admitted for trading by the end of January.
Sirius's share price had dropped 13% by 12:05pm on news of the placing.
BS
-
Buying a property is cheaper than renting again – how much could you save?
News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
By Marc Shoffman Published
-
Is now a good time to invest in India?
Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
By Cris Sholto Heaton Published