Mine firm to raise £50million for drilling

THE COMPANY behind plans to build a potash mine between Scarborough and Whitby is looking to raise £50 million for the next phase of the project.

Sirius Minerals is aiming to raise the figure from the placing of new shares on the stock market.

The money will be used to drill an extra eight temporary boreholes in the area as part of its ongoing testing programme, and to secure additional mineral and land rights.

Sirius chief executive Chris Fraser, says the first two test drill sites have indicated mine set up costs could be less than predicted. He said: “Following on from the very encouraging results from our first two new holes and the evidence from the second hole that it may be possible to develop the mine with a lower cost shaft than had originally been envisaged, we are keen to further accelerate the project’s development programme.

“With the backdrop of continuing uncertainty in global markets we have decided to raise all of the funding necessary to take the York Potash Project through to the completion of its definitive feasibility study.

“This will allow us to fast-track the project development without any funding constraints so that the project can be brought into production as soon as possible.”

Company chairman Russell Scrimshaw has signalled his intention to subscribe for new shares worth around £3.4 million.

The location for the mine head is yet to be determined, and will be decided based on the results of the completed test drilling programme.