Shares in Sirius Minerals were down 11 per cent today as the company released plans to secure $1.2bn worth of funding for a new mine in North Yorkshire.
The company said it had secured $300m (£250m) from Gina Rinehart, the Australian boss of Hancock Prospecting, but it will raise the rest of the money by issuing new shares and bonds. These will at first be offered to those who already hold shares in the company.
It estimated that the shares would be sold off for between 20 and 30p - far below the closing price yesterday of 36.75p - which has led to the value of the shares taking a sharp dip.
The current price has recovered a little - up to 34.25p per share - down seven per cent from yesterday's close.
The first round of cash will finance the site preparation, mine shafts and tunnel caverns, for the first three years. It hopes to produce 10m tonnes of polyhalite fertiliser per year at first, with plans to double output in the future.
Chief executive Chris Fraser said: “It's been a long journey to this point, and we still have some way to go, but I want to thank everyone who has supported the company in its efforts to reach this major milestone.
“Once we have received shareholder approval, we want to get on with the job of delivering this compelling value proposition, not only for our shareholders but also for the North Yorkshire community."