Sirius Minerals Plc Financing - progress update (6273I)
September 01 2016 - 2:00AM
UK Regulatory
TIDMSXX
RNS Number : 6273I
Sirius Minerals Plc
01 September 2016
1 September 2016
Sirius Minerals Plc
Financing - progress update
Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the
"Company") provides an update on the financing for its North
Yorkshire polyhalite project (the "Project").
The Company's financing plan was articulated in the announcement
of 17 March 2016 and updated in the capital funding requirement
reduction announcement of 24 June 2016. The Company continues to
make good progress with its two stage financing plan.
Following a market sounding with potential senior debt lenders
the Company has now mandated a group of six financial institutions
experienced in mining and infrastructure project finance as
Mandated Lead Arrangers (the "MLAs"). The MLAs - Export Development
Canada ("EDC"), ING; J.P. Morgan; Lloyds Bank plc; Societe
Generale, Corporate & Investment Banking; and The Royal Bank of
Scotland Plc - have been mandated on the basis of a non-binding but
mutually agreed term sheet, having undertaken initial due diligence
of Project documents.
Once approved the Stage 2 financing is expected to comprise of
aggregate senior debt facilities of up to US$2.6 billion (the
"Facilities") to fund the Stage 2 capital funding requirement and
costs relating to financing the Project. Financial close for the
Facilities is expected to take place in 2018.
The Company expects the Facilities to be provided from a group
of commercial banks, Export Credit Agencies ("ECAs") and other
financing institutions (including the MLAs) with a component
receiving the benefit of a HMT Guarantee to be provided under the
UK Guarantee Scheme ("UKGS"). The MLAs will seek to arrange the
Facilities and have indicated that they will fund up to US$700
million in aggregate of the Facilities. The initial marketing
conducted by the Company indicated that further funds will be
available above and beyond the amounts indicated by the MLAs.
The Infrastructure and Projects Authority ("IPA"), which was
established in January 2016 by merging the Major Projects Authority
with Infrastructure UK, and reports jointly to both HM Treasury
("HMT") and the Cabinet Office, has already prequalified the
Project for consideration for a HMT Guarantee (announced 22
September 2015). IPA has discussed the Stage 2 financing plan with
the Company and confirmed its interest in supporting the Stage 2
financing for the Project.
The appointment of the MLAs does not constitute an offer of
financing or an underwritten commitment by the MLAs to provide
financing. The MLAs' appointment is subject to market standard
conditions including due diligence, credit and other business
approvals, and execution of legal documentation acceptable to the
MLAs. Similarly, IPA's prequalification does not constitute an
offer of financing or an underwriting commitment. IPA requires its
normal processes to be undertaken in addition to due diligence,
such as satisfaction of conditions, HM Treasury credit process,
risk committee, credit committee and ultimately Ministerial
approval.
The Company intends to progress the Stage 2 financing, with the
MLAs and IPA commencing detailed due diligence, following the
successful completion of the Stage 1 financing. The Company
continues to progress the Stage 1 financing and is in active
discussion with a number of parties undertaking due diligence. The
details of the Stage 1 capital structure and timing will be subject
to further announcement at an appropriate time.
Chris Fraser Managing Director and CEO said:
"The Stage 2 senior debt financing is a major component of the
total financing plan for the development of the Company's North
Yorkshire polyhalite project. The progress to date provides a
strong foundation of support for the Company to further expand on
over the next two years to complete the full financing of a
development that can generate so many positive economic benefits to
the region and country as a whole.
"The Company is now focussed on the finalisation of the Stage 1
financing to enable construction to commence as soon as possible.
This positive step on the senior debt financing should provide
Stage 1 investors with greater clarity and confidence on the total
financing of our world class fertilizer business."
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information, please contact:
Sirius Minerals Plc
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
524 0247
------------------------- ------------------------------- ---------------
Joint Brokers
Liberum Capital Limited Neil Elliot, Tel: +44 20
(NOMAD) Clayton Bush, 3100 2222
Jill Li
J.P. Morgan Cazenove Ben Davies, Jamie Tel: +44 20
Riddell 7742 4000
WH Ireland Adrian Hadden Tel: +44 20
7220 1666
------------------------- ------------------------------- ---------------
Media Enquiries Jos Simson, Mike Tel: +44 20
Tavistock Bartlett, 7920 3150
Emily Fenton
------------------------- ------------------------------- ---------------
About Sirius Minerals Plc
Sirius Minerals is the fertilizer development company focused on
the development of its North Yorkshire polyhalite project, the
United Kingdom. It has the world's largest and highest grade
deposit of polyhalite, a multi-nutrient form of potash containing
potassium, sulphur, magnesium and calcium. Incorporated in 2003,
Sirius Minerals' shares are traded on the London Stock Exchange's
AIM market. Its shares are also traded in the United States on the
OTCQX through a sponsored ADR facility. Further information on the
Company can be found at: www.siriusminerals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDGGDIUSXBGLB
(END) Dow Jones Newswires
September 01, 2016 02:00 ET (06:00 GMT)
Sirius Minerals (LSE:SXX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sirius Minerals (LSE:SXX)
Historical Stock Chart
From Apr 2023 to Apr 2024