Sirius proposes raising £30m in placing

SIRIUS Minerals announced this morning its intention to raise a minimum of £30m through a share placing which will be used to continue its work on the York Potash project.

The company said that along with its existing cash resources of £10m, the proceeds from the placing will be used to continue the current schedule of work at the York Potash Project and to complete the definitive feasibility study, fund work to support the project approval applications and for continuing project expenditure including land options, sales and marketing activities, crop studies and general corporate overheads.

The stock is being offered at 12 pence while investors will also receive one warrant for every two shares they acquire.

The warrant offers the opportunity to buy further Sirius shares at 18 pence each.

The placing is being conducted through an accelerated book build process to qualifying investors.

Liberum Capital and Macquarie Capital (Europe) are acting as joint global co-ordinators and joint bookrunners.

This morning the company’s share price was -0.75p at 12.25p.