Sirius issues convertible bond offering results

Sirius Minerals announces the successful placement of $400m of Guaranteed Convertible Bonds due 2023 (the “Bonds”), guaranteed by the Guarantor.

Concurrently with the Offering, Sirius Minerals Plc raised £370 million with a firm placing and placing and open offer of new ordinary shares in the capital of the Guarantor (the “Concurrent Equity Placement”).

Additionally, the Company has secured a royalty financing contractual arrangement for a total of $300 million with Hancock British Holdings Ltd, a subsidiary of Hancock Prospecting Pty Ltd, as announced on 25 October 2016 (the “Royalty Financing”).

The Company intends to use the net proceeds of the Offering, the Concurrent Equity Offering and the Royalty Financing as part of the approximate $1.2bn first stage of the financing to begin the construction of its North Yorkshire polyhalite project.

The Bonds will be issued by Sirius Minerals Finance Limited (the “Issuer”), a wholly-owned subsidiary of the Company incorporated in Jersey and will be guaranteed by the Company.

The Bonds will be issued at par and carry a coupon of 8.5% per annum payable quarterly in arrear in equal instalments.

The Bonds will be convertible into fully paid ordinary shares of the Company (the “Ordinary Shares”) with the initial conversion price set at US$0.3076, representing a 25% premium above the clearing price of the Concurrent Equity Placement of £0.20 (converted into U.S. dollars at a GBP/USD 1.2304 rate).

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