Sirius cancels $500m bond sale, shares plummet
The share price of London-listed Sirius Minerals plummeted on Tuesday, as the company cancelled the recently announced $500-million note offering that was meant to unlock a $2.5-billion revolving credit facility intended to see its North Yorkshire fertiliser mine funded through to construction.
In a short statement announcing the cancellation of the bond offering, the company said that it would revisit the market if conditions improved later this quarter.
Sirius lost one-quarter of its value on Tuesday, as the cancellation of the bond cast doubt on the future of funding for the Woodsmith mine. Stock fell by 25% to 10.98p each.
The mine will access the world’s largest and highest-grade polyhalite deposit and is one of the largest mines to be built in the UK for a generation. The project mine involves the sinking of two shafts to a depth of 1 600 m to access the polyhalite resource. The mine is expected to operate at ten-million tons a year by 2024, expanding to 20-million tons a year by 2029.
Polyhalite is a mineral that can be used as fertiliser.
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