Sirius Minerals raises £20m

10th Mar 2011 18:22

Potash projects developer Sirius Minerals has raised £20m at 13p a share. The AIM-quoted company wants to spend £10.5m on drilling and seismic studies for the York potash project. This should be enough to define a JORC resource for the project. Another £3m will be required for engineering and environmental studies plus planning and the purchase of additional mineral rights. York Potash was acquired by Sirius in January and its founder Chris Fraser became managing director and chief executive officer of Sirius. York Potash signed various agreements with major landowners over mineral rights covering more than 600 square kilometres onshore and offshore between the towns of Whitby and Scarborough in North Yorkshire, England. The mineral rights relate to all the evaporites including potash (sylvite), polyhalite, rock salt, and intermingled minerals beneath the agreement areas.Three other group projects, including Dakota Salts, will receive £1.5m to finance their progress. Sirius is still looking for a partner for its Adavale project. The other £5m will go on working capital and the costs of the fundraising. The cash was raised in the UK, US and Australia. Capital Research Global Investors, a division of Capital Research and Management Company, has taken a 7.34% stake in Sirius.