Embattled Sirius Minerals could be saved as a key investor pledged to back the controversial Anglo American rescue deal a day before shareholders vote.
Jupiter Fund Management, which has a 7.8 per cent stake in the troubled project, will tomorrow back the £405m deal, according to Sky News.
Last month the boss of Sirius urging investors to back the deal.
However, critics have argued the 5.5p per share offered by the mining giant undervalues Sirius.
One of these is veteran city tycoon Crispin Odey, whose wife Nichola Pearse runs Jupiter – which backs the takeover bid.
According to Odey, Anglo’s offer is too cheap and because it is not “best and final” Anglo American has left the door open to paying more.
Odey owns around 1.3 per cent of Sirius compared to 7.8 per cent owned by Jupiter.
It was hoped Sirius’ North Yorkshire potash mine could generate thousands of jobs.
The mine is thought to be the largest deposit in the world but the project ran into difficulty in September when Sirius failed to win key funding.
Investors meet tomorrow to decide whether to accept the Anglo offer.