Sirius Minerals continues to raise money
The British company Sirius Minerals has announced its intention to issue guaranteed non-convertible bonds in the amount of $500 million with maturity in 2027.
In May, Sirius Minerals unveiled a plan aimed at raising up to $3.8 billion. The package of measures includes the issue of new shares in the amount of $400 million, of guaranteed non-convertible bonds for $500 million, of guaranteed convertible bonds for $644 million, as well as obtaining a revolving credit facility of $2.5 billion.
Sirius Minerals needs the attracted funding to complete development of the Woodsmith mine. Upon commissioning, Woodsmith Sirius Minerals will supply the market with Poly4, its flagship polyhalite-based chemical fertilizer. It has already earned the nickname “potassium chloride killer” for its valuable agricultural properties.
Large deposits of polyhalite have been discovered in the North Sea along the northeast coast of Great Britain. To access them Sirius Minerals will use the Woodsmith mine, which is being built 3 miles south of Whitby. The layers of polyhalite are 1.5 km below the ground and spread over an area of 796 square km, 535 square km of which are located in the marine coastal zone.
At peak production Sirius expects to export 20 million tonnes a year of its Poly4 product globally.