Anglo American has made a takeover offer for Sirius Minerals for 5.5 pence per share.
This offer significantly undervalues Sirius Minerals and if approved will result in significant losses for the vast majority of shareholders, which includes around 85,000 private investors who hold 50% of the shares.
The effect of those losses will be life savings and pensions devastated for ten of thousands of private individuals.
The vote on the Anglo American offer will take place on the 3rd March 2020.
In September 2019 Sirius carried out a strategic review which concluded that £460m ($600m) was needed to fund the project through the next two years of critical infrastructure development.
Sirius has not, to date managed to raise the funds required and the Board of Directors has therefore decided to recommend accepting the Anglo offer.
At no point during or following the Strategic Review did Sirius reach out to private investors to request their support with the funding, despite them owning 50% of the shares in Sirius. We believe that this was an error on the part of Sirius and a missed opportunity to raise the funds and protect shareholders’ existing investments.
We are a group of proactive private investors (see About Us) who wish to demonstrate to Sirius that the funds can be raised and the offer from Anglo American should be rejected and a formal fundraising should be undertaken by Sirius.
What’s the funding for?
The funding will be used by Sirius specifically to advance the perceived higher risk aspects of the mine development, namely the mine shafts and tunnel that will transport the product from mine to port for processing and distribution.
During this phase of development access to the polyhalite product will also be achieved, allowing Sirius to sell a modest amount of product which, will help service debt.
Completion of this phase over the next two years will de-risk the remaining mine development and allow Sirius to access the remaining capital required to complete the project on more favourable terms consistent with most construction/infrastructure projects.
Raise and Save
Our proposal is to raise the funds using bonds and if necessary an element of the share issue.
The bonds will have attractive rates of interest paid, be repayable at the end of term, and be available in various sizes to allow as many private investors to participate as possible. You do not need to be an existing shareholder to participate.
Details of the proposal can be found here Bond Proposal
If it can successfully be demonstrated to Sirius that funding is available through this private investor-led initiative, then there is a good chance that the Anglo American offer will be rejected.
Shareholders will then be saved from selling their shares to Anglo American and incurring huge losses. There should also be a rise in share price as development proceeds securing the future for shareholders and the wider community.
How you can help
If you are willing to help raise the funds then please take the survey by clicking the button below. It will take you just a minute.
We would also ask you to forward this web site to all your friends and family and then ask them to do the same.
The campaign is being promoted across various social media platforms and we are in touch with a number of national and regional newspapers, ShareSoc and institutional investors, but we really need your help to make this go viral, thank you.
Source Link https://fundsirius.com/
