1st May 2019 08:11
LONDON (Alliance News) - Sirius Minerals PLC has raised more than originally envisaged, the miner said on Wednesday, though shares were offered at a sharp discount.
Sirius on Tuesday announced a USD3.8 million funding package to develop its Woodsmith polyhalite mine in Yorkshire, and this included a placing, firm placing, and open offer, worth up to USD400 million, at between 15 pence and 18p a share.
Sirius has managed to raise USD425 million, due to high demand, with shares placed at 15p.
This is a 32% discount to Sirius' closing price on Monday in London, and the 1.96 billion new shares represent some 28% of its share capital. A further 218.0 million shares were placed in the open offer at the same price.
Sirius shares were down 7.5% early Wednesday at 16.11p each, having lost 20% on Tuesday.
Under the open offer, Sirius will hand over one new share per every 22 existing shares held.
Managing Director & Chief Executive Chris Fraser commented: "I am pleased we have had such a positive response to the launch of our stage two financing solution which is key to unlocking the vast and long-term potential of our project."
Fraser added: "The order books were oversubscribed, providing scope for a modest increase in the funds raised, further strengthening our financial position as we turn our attention toward securing the next phase of our stage two financing requirements."
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Sirius Minerals