York Potash have raised another £43m:
Sirius Minerals, the parent company of York Potash has announced that it has secured £43 million in capital. The money which was raised through a share placing, attracted a range of institutional investors from the UK and around the world and further endorses the support for the development of the York Potash Project.
The proceeds will be used to continue the current schedule of work, including planning approvals, sales and marketing activities, crop studies and general corporate overheads.
Chris Fraser, Managing Director and CEO of Sirius, said:
“The £43m capital raising has been a great success and endorsement of our strategy and the York Potash Project. With broad support from existing and new shareholders, this raising will provide funding for the Company’s definitive feasibility study and flexibility to accelerate detailed engineering and design work for the Project.”
The investment looks to be by Capital Group Companies, one of the largest investment management companies.
For a company like that, a long term successful mining operation is exactly the sort of thing they want to invest in. Once established it could give consistently good returns over the long term. The whole operation isn't about a small group looking to turn a profit after a few years, it's about long term institutional investors not having to worry about how they are going to pay pensions etc.
I can't imagine CGC take that much of a share in a company without putting some seriously brainy analysts to work on it first. Given the overall size of their investments £43m is very small, but they must see the operation as having a reasonable chance of going ahead, and becoming profitable.