Struggling mining firm Sirius urged to accept takeover
The boss of embattled miner Sirius minerals has told shareholders the offer from Anglo American is its only viable way forward.
Chief executive Chris Fraser expressed support for the rescue despite Anglo American bidding 5.5p per share for Sirius.
Each one being valued valued at 22.4p a year ago.
“If the takeover does not go ahead there is a “high probability” that Sirius will go into administration,” he told the Yorkshire Post.
The £4.5m offer has also attracted support more widely.
Sirius have been searching for a partner to rescue the project since failing to raise key funding in September last year.
“What are their alternatives?
“If they just say no, if it doesn’t go through, the company’s going to go bust and they lose everything,” Ed Weeks, partner at Cripps Pemberton Greenish, told City PM
Investors include local people, some of whom are believed to have invested long term savings.
It is hoped that mining polyhalite fertiliser from under the North Yorkshire moors will create 1,000 direct jobs in the area, with more to follow in the supply chain
The local MP, who is also a shareholder, has urged shareholders to accept the offer.
Robert Goodwill said shareholders rejecting the plan would be his “nightmare” in comments to the Daily Mail.
Anglo American has said it sees “huge potential” in the project and believes it can help Sirius export more.
The board of Sirius has urged shareholders to accept the deal when they meet on 3 March.
If it fails, Sirius could enter administration within a month.