Sirius Minerals has been engaged in developing the North Yorkshire polyhalite project in the UK
Anglo American in talks to acquire Sirius Minerals. (Credit: aymane jdidi from Pixabay)
Anglo American has confirmed that it is in advanced talks with UK-based potash mine developer Sirius Minerals to acquire the latter for about £386m.
The company is looking to buy the potash mine developer at 5.5p per share in cash.
The proposal comes in the wake of an announcement from Sirius Minerals in September 2019 that it was executing a strategic review. The company launched the review to evaluate the development plan for its North Yorkshire polyhalite project and to develop a different financing structure for the required funding.
Sirius Minerals seeks partner in the North Yorkshire polyhalite project
The potash mine developer also said that the review would include a broader process to seek a major strategic partner in the polyhalite project located in the UK.
In November 2019, the company came up with a revised two-stage development plan for the North Yorkshire polyhalite project.
The North Yorkshire polyhalite project calls for the construction of the Woodsmith Mine, located south of Whitby in North Yorkshire. The project, which aims to extract polyhalite, would also involve the construction of a tunnel system to transport the commodity to a materials-handling facility and harbour located at Teesside.
Anglo American said that the project can potentially become a world-class, low-cost, and long-life asset. It further said that Sirius Minerals has progressed its development to an advanced stage with construction in progress for more than two years.
According to Anglo American, the North Yorkshire polyhalite project needs a considerable amount of further financing for its development and commissioning. Anglo American said that it has both the resources and capabilities to help consolidate on what Sirius Minerals’ team has done.
The company, in a statement, said: “Anglo American believes that the possible offer could provide certainty to Sirius’ shareholders, whilst Anglo American brings the financial, technical and marketing resources and capabilities to progress the Project over time. This should also be in the interests of Sirius’ broader stakeholders including employees and customers.”