Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept. Michael Taylor looks at the situation and the options for shareholders

Sirius Minerals' Woodsmith Mine near Whitby © Sirius Minerals

Yorkshire-based mining minnow Sirius Minerals had hoped to extract millions of tonnes of polyhalite – a form of potash used in fertilisers – from the world’s largest deposit underneath the North Yorkshire Moors. It has long been a favourite with small investors. But it ran into trouble late last year after plans to raise $500m via a bond sale fell through.

Mining giant Anglo American has proposed a cash takeover, at 5.5p per share. That offer’s deadline is now looming. On the one hand, Anglo American’s offer seems like a lifeline. But on the other, it means big losses for many of the shareholders. This offer has been recommended by the board – a board many shareholders feel has consistently overpromised and failed abysmally. Many private investors have lost huge sums of money. Some have lost life savings and pensions.

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Michael Taylor is an ex-trader. For more from him, see shiftingshares.com.