Two !!! No holds barred?
"Conference call and webcast
Sirius Minerals' Chief Executive Officer, Chris Fraser, will host a conference call and webcast presentation for analysts at 9.30 a.m. today. Any analysts wishing to access the call and presentation should email email@example.com to register before 9.00 a.m.
A replay of the conference call and presentation will be available on the Company's website from 2.00 p.m. "
"Chris Fraser, Managing Director and Chief Executive Officer, said:
"I am delighted to announce this proposed fully underwritten financing package which - together with our new strategic investor, Hancock, announced last week - provides the comprehensive Stage 1 financing required to start construction of our North Yorkshire polyhalite project.
"We thank existing shareholders for their continued support as well as the new institutional investors who recognise this unique opportunity to help develop what we believe to be the world's largest high-grade known polyhalite deposit into a major low cost multi-nutrient fertilizer business.
"We are also pleased to provide an opportunity for our existing shareholders to participate via the Open Offer which is designed to reduce the dilution of this proposed fundraising via subscribing for new shares. In order for today's proposed financing to be implemented, we will be holding a General Meeting on 25 November 2016, at which point the Company will be seeking shareholder approval.
"This project will create jobs in North Yorkshire and Teesside, and represents a significant business investment in the UK. 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."
Northern Powerhouse Minister Andrew Percy MP said:
"Today's launch of Stage 1 financing for Sirius Minerals' North Yorkshire polyhalite mining project is a very welcome sign of progress. This project has the potential to create over 1,000 jobs, boost growth and generate billions of pounds of exports for the Northern Powerhouse.
"We support their efforts to help make the north a world leader in the multi-nutrient fertiliser industry.
"Already foreign direct investment projects are up nearly a quarter on the previous year and today's announcement is another vote of confidence in the Northern Powerhouse."
II "Sirius Minerals Plc (the "Company", the "Guarantor", and together with its subsidiaries, the "Group") today announces the launch of an offering (the "Offering") of US$400 million of Guaranteed Convertible Bonds due 2023 ..."
hey ... little monkeys had to get to skool first...
Awwwwwe ... pieces of eight :
"Concurrently with the Offering, a firm placing and placing and open offer of new ordinary shares in the capital of the Guarantor to raise approximately £330 - 400 million will be undertaken by the Sole Bookrunner and others on behalf of the Guarantor (the "Concurrent Equity Placement"). Additionally, the Company has secured a royalty financing agreement for a total of US$300 million with a subsidiary of Hancock Prospecting Pty Ltd, as announced on 25 October 2016 (the "Royalty Financing").
The Company intends to use the expected net proceeds of the Offering, the Concurrent Equity Placement and the Royalty Financing as part of the approximate US$1.2 billion first stage of the financing to begin the construction of its North Yorkshire polyhalite project.
The Bonds will be issued by Sirius Minerals Finance Limited (the "Issuer"), a wholly-owned subsidiary of the Company incorporated in Jersey, and will be guaranteed by the Company.
The Bonds will be issued at par and are expected to carry a coupon in the range of 8.0 - 8.5% per annum payable quarterly in arrear in equal instalments. The Bonds will be convertible into fully paid ordinary shares of the Company (the "Ordinary Shares") with the initial conversion price expected to be set at a premium in the range of 25 - 30% above the clearing price of the Concurrent Equity Placement.
On the Closing Date (as defined below), the Issuer will transfer to an escrow account (which is to be secured for the benefit of the bond trustee for itself and the bondholders) a sum equal to the full amount of the first twelve interest payments on the Bonds, which can be released in certain circumstances as specified by the Terms and Conditions of the Bonds.
Unless previously converted or redeemed, or purchased and cancelled, the Bonds will be redeemed at par on 28 November 2023.
The Issuer will have the option to redeem all, but not some only, of the outstanding Bonds:
· At any time on or after 19 December 2018 at par plus accrued interest if the Call Value of the Ordinary Shares underlying a Bond shall have been at least US$350,000;
· At any time on or after 19 December 2021 at par plus accrued interest if the Call Value of the Ordinary Shares underlying a Bond shall have been at least US$300,000; and
· At any time, if 85 per cent. or more of the aggregate Principal Amount of the Bonds originally issued shall have been previously converted or repurchased and cancelled (the "Clean-up Call"),
where the "Call Value" means the value of the Ordinary Shares (converted into U.S. dollars at the prevailing rate) underlying each Bond of US$200,000 in principal amount as calculated on each of at least 20 dealing days in any period of 30 consecutive dealing days ending not more than 7 days prior to the giving of the notice of redemption.
The final terms of the Bonds are expected to be announced on 3 November 2016, subject to acceleration. Settlement and delivery of the Bonds is expected to take place on or about 29 November 2016 (the "Closing Date")."
OK, slightly Frazzled .... Awwwesome !!!
The annoying bit : https://www.youtube.com/watch?v=gNGXcEP3lXI
Heads or tails ....
"(ii) an underwritten Firm Placing and Placing and Open Offer to raise approximately £330 - 400 million1; and
(iii) an underwritten Convertible Bond Offering to raise approximately US$400 - 450 million. "
ii = a placement of new equity (shares, approx a third of Stage 1 finance) the placement price to be decided by the market on 3rd November. Expected to be discounted by 25 - 30% ... this is the highest risk financing of the project so expect a freeforall ... topsey turvey tumble.... tho has been eagerly anticipated for some time.
iii = underwritten Bond 8% ish interest ... options kept open until Dec 2018 ... when the highest risk (shaft construction ) convertible or consumed on implementation of Stage II financing at a lower rate and mebbe guaranteed by IUK (Infrastructure UK)
"The company has lined up investment from three separate sources....
"Investors will be asked to fork out up to US$490mln (£330-£400mln) in a fully underwritten placing and open offer, while a convertible bond issue will bring in US$400-£450mln.
The raise is the first stage in a two-part programme that will take the North Yorkshire project into production at an initial 10mln tonnes of polyhalite fertiliser per year. After that there are plans to double output.
This first tranche of cash will finance the cost of all site preparation, mine shaft excavations, tunnel caverns and the money is expected to be spent in three years. The second round of fundraising will bring in a further US$1.8bn."
Eat ya Greens ....
Yup, tis like watching 'man' giving birth ... Sirius the star is born?
Waiting for the dust to settle .... then lift off :-)
Now... about that Canal.