Major global financial institution looks to finance North Yorkshire mine

Sirius Minerals has received a conditional, alternative proposal from a “major global financial institution” to finance the second stage of its potash mine project in North Yorkshire.

The listed company, which is working on the Woodsmith Mine to access the world’s largest and highest grade polyhalite deposit, has been pursuing a senior debt financing with a group of prospective lenders since 2016.

This was most recently adjusted on 22 January 2019 to focus on a $3bn multi-tranche structure.  The new proposal contains an alternative senior debt structure to completely replace that structure.

Sirus Minerals said: “The Company believes that the Alternative Proposal potentially offers a more flexible and attractive solution to its stage 2 financing requirements and therefore it is pausing discussions with its existing prospective lenders to pursue the Alternative Proposal.

“A number of options for the additional non-senior debt financing requirement, as previously outlined in the Company’s announcement of 6 September 2018, continue to be progressed.”

It is now working towards obtaining firm commitments for the proposal and its additional financing requirements before the end of April.

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