Sirius Minerals provides financing and development update
Published by Nicholas Woodroof,
- Due to global market conditions and the uncertainty related to Brexit, the company does not believe the proposed US$500 million senior secured notes offering can currently be issued as planned.
- The company had requested Government provide a commitment to enable the issue of up to US$1bn of guaranteed bonds but the Government has decided not to provide the support requested.
- As a result of these factors, the scope of construction activities on the company’s North Yorkshire Polyhalite Project will now be adjusted while a strategic review is undertaken over a period of up to six months.
- Unrestricted cash reserves of £180 million (£100 million uncommitted) as at 31 August 2019 provides sufficient liquidity for the Company to explore all strategic options during the six month review period.
- The four strategic options under review are:. - Alternative financing arrangements
- The US$400 million convertible bonds due 2027 with the proceeds held in escrow following the issuance of such bonds in May 2019, will be redeemed and proceeds returned to investors.
- Potential to optimise the project development plan
- Strategic investor process
- Potential to revise the project development plan
Sirius Minerals will use the upcoming six months to find the best route forward to complete the Project and realise its true value.
The company is committed to finding a way to deliver a solution for the benefit of all key stakeholders once this has been found after conducting a full strategic review with the help of its advisers.
Read the article online at: https://www.worldfertilizer.com/project-news/18092019/sirius-minerals-provides-financing-and-development-update/
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