6th Mar 2014 17:53
LONDON (Alliance News) - Sirius Minerals PLC Thursday said it raised GBP43 million in a share placing, representing approximately a 23.8% shareholding in the company, which it said it will use to fund work on its York Potash project.
Earlier Thursday, the diversified potash development company said it was looking to raise a minimum of GBP30 million in a share placing of at least 250 million new shares. However it ended up raising GBP43 million in a share placing of 358.7 million shares, at a price of 12 pence each.
Together with existing cash resources, it said the money will allow it to continue the current schedule of work at the York Potash Project, 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 GBP43 million capital raising today has been a great success and endorsement of our strategy and the York Potash Project. With broad support from existing and new shareholders in the UK and around the world, this oversubscribed and upsized raising will provide funding for the company's definitive feasibility study and flexibility to accelerate detailed engineering and design work for the Project," said Chief Executive Officer Chris Fraser in a statement.
Sirius Minerals shares closed trading Thursday down 7.7% at 12.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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