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Stocks of London-listed Sirius Minerals, the potash development group with assets in the US, Australia and the UK, jumped 5% on Wednesday after announcing financial results for the year to end March and raising £24.3 million.
The company hopes to mine the UK’s only seam of potash and has started drilling in the North York Moors National Park where it has secured mineral rights for 631 sq km of land. Sirius said York Potash has the potential to turn it into a tier one potash producer.
Shares in Sirius Minerals closed at £8.60 up 5.2% on Wednesday on the London bourse after announcing the £24.3 million capital raising in three separate placings adding that what it calls “high quality institutions” now hold some 15% of the company’s issued share capital. Year to date the company has lost a third of its value and its 52-week high is £22.50.
Chairman Chris Catlow said: “York Potash has the potential to rapidly become a ‘Tier 1’ company-making asset. It provides Sirius with a world-class project that has every chance of becoming a major potash production centre and a significant contributor to both the North Yorkshire and the UK economies.
“At the same time as aggressively moving York Potash forward we will continue to conduct exploration and analysis work on our existing Australian and American properties and review and evaluate numerous other opportunities to add shareholder value.
Image is of ground breaking at first York Potash Project Drill site on 22 June 2011. For more on the York potash project click here.
Comments
Steve
If only it was true. I think the text should read Sirius shares closed at 8.60 pence not £. Maybe one day!