London-listed Sirius Minerals is considering an alternative financing proposal for the Woodsmith mine, which will access the world’s largest and highest-grade polyhalite deposit in North Yorkshire, UK.
The alternative financing is expected to replace the $3-billion senior debt financing that Sirius has been negotiating with a group of prospective lenders since 2016.
“The company believes that the alternative proposal potentially offers a more flexible and attractive solution to its Stage 2 financing requirements and, therefore, it is pausing discussions with its existing prospective lenders to pursue the alternative proposal,” the mining company said this week.
The Woodsmith mine involves the sinking of two shafts to a depth of 1 600 m to access the polyhalite resource. The mine is expected to operate at ten-million tons a year by 2024, expanding to 20-million tons a year by 2029.
Construction of Woodsmith started in May 2017.