Sirius Minerals has suspended a $500m (£410m) fundraising due to “current market conditions” – effectively putting financing for its massive polyhalite mine on hold.
The company, which is building a £2.5bn mine and Teesside processing plant, says it has enough cash to keep building at its current pace until September.
It comes as US President Donald Trump’s trade war with China has sent ‘shudders’ through the stock market on Monday, according to reports.
Sirius’ share price slumped 28% to 10.5p following the announcement on Tuesday.
Earlier this year the company announced it is securing a £2bn credit facility with JP Morgan to get the project over the finish line, but must first raise £410m of its own before the investment bank will release the funds.
Sirius was in the process of raising the money through a bond sale this week – until stock markets plunged
Sirius Minerals Plc (the “Company”) has decided to suspend the proposed offer by its wholly-owned subsidiary of $500 million of senior secured notes due 2027 previously announced by RNS on 19 July 2019 due to current market conditions.
