SXX : Finance - Dusted

Captain Black's picture

"3 November 2016, Sirius Minerals Plc, Results of Firm Placing and Placing
Sirius Minerals Plc (the "Company") announced on 2 November 2016 the details of a proposed Firm Placing and Placing and Open Offer.  The Company has completed the Bookbuild and has raised gross proceeds of approximately £370 million through the Firm Placing and Placing in connection with its Stage 1 financing requirements to begin the construction of its North Yorkshire polyhalite project.
 
Concurrently, the Company has successfully placed US$400 million of Convertible Bonds through the Convertible Bond Offering.
 
Capitalised terms not otherwise defined in the text of this announcement have the meanings given in the Company's announcement of 2 November 2016.
 
Pursuant to the Firm Placing, Firm Placees have agreed to subscribe for 1,665,805,761 Firm Placed Shares at an issue price of 20.00 pence per New Ordinary Share (the "Issue Price").  The Firm Placed Shares represent approximately 40.0 per cent of the Company's issued Ordinary Shares following Admission.  In addition, pursuant to the Placing and Open Offer, the Joint Bookrunners and Co-Lead Managers have placed 185,089,529 Open Offer Shares at the Issue Price with the Conditional Placees, subject to clawback to satisfy valid applications by Qualifying Shareholders under the Open Offer.  The Open Offer Shares represent approximately 4.4 per cent of the Company's issued Ordinary Shares following Admission.
 
Pursuant to the Open Offer, Qualifying Shareholders will be given the opportunity to apply for the Open Offer Shares at the Issue Price, on and subject to the terms and conditions of the Open Offer, pro rata to their holdings of Existing Ordinary Shares on the Record Date, on the following basis:
2 New Ordinary Shares for every 25 Existing Ordinary Shares
 
Open Offer Shares will also be made available to Qualifying Shareholders under the Excess Application Facility.  Fractions of New Ordinary Shares will not be allotted and each Qualifying Shareholder's entitlement under the Open Offer will be rounded down to the nearest whole number.  Further information will be set out in the prospectus to be published by the Company in due course.
 
The Firm Placing and Placing and Open Offer are conditional upon:
·     the Resolutions being passed by the Shareholders at the General Meeting (or an adjournment thereof); and
·     the Placing and Open Offer Agreement otherwise becoming unconditional in all respects and not having been terminated in accordance with its terms prior to Admission.
 
The conditions contained in the Placing and Open Offer Agreement include, inter alia, (i) the Royalty Financing Agreement not having been terminated prior to Admission, (ii) the subscription agreement in connection with the Convertible Bond Offering having been entered into and not having been terminated prior to Admission and (iii) Admission becoming effective by not later than 8.00 a.m. on 29 November 2016 (or such later time and/or date as the Company and the Joint Bookrunners may agree).
 
A General Meeting is to be held at De Vere West One, 9-10 Portland Pl, Marylebone, London W1B 1PR, United Kingdom at 11.00 a.m. on 24 November 2016 for the purpose of passing certain Resolutions in relation to the proposed Firm Placing and Placing and Open Offer, the Convertible Bond Offering and the Royalty Financing Ordinary Shares.  Further details of the General Meeting will be contained in the Circular expected to be posted to Shareholders on or around 3 November 2016.
 
Application will be made to the London Stock Exchange for the New Ordinary Shares issued in connection with the Firm Placing and Placing and Open Offer to be admitted to trading on AIM.  It is expected that Admission will become effective, and that dealings in the New Ordinary Shares will commence on AIM, at 8.00 a.m. on 28 November 2016.
 
New Ordinary Shares issued under the Firm Placing and Placing and Open Offer in uncertificated form are expected to be credited to CREST accounts on 28 November 2016, and definitive share certificates for the New Ordinary Shares issued under the Firm Placing and Placing and Open Offer in certificated form are expected to be dispatched within 5 Business Days of Admission.
 
The Enlarged Share Capital of the Company following Admission will be 4,164,514,405 Ordinary Shares in aggregate.
 
Chris Fraser, Managing Director and Chief Executive Officer, said:
"The completion of the convertible bond and equity placing is great news for the Company, and delivers the financing that allows us to start construction of our North Yorkshire polyhalite project.
"It is important to thank existing shareholders for their continued support and the new investors that took part in this capital raising.  As announced yesterday, we are also pleased to provide an opportunity for existing shareholders to participate via the Open Offer which is designed to reduce the dilution of this proposed fundraising. 
"I would strongly encourage shareholders to vote in favour of the capital raising at the forthcoming General Meeting on 24 November 2016 in order to allow us to progress to the next stage and commence construction."
 
Related Party Transaction
Capital Research and Management Company, by virtue of its holding of more than 10 per cent. of the existing issued share capital of the Company, is considered a related party of the Company and its participation in the Firm Placing and the Placing is considered a 'related party transaction' under the AIM Rules for Companies.  The Directors, having consulted the Company's Nominated Adviser, Liberum, consider that the terms of the Firm Placing and the Placing are fair and reasonable in so far as its Shareholders are concerned.
This announcement is released by Sirius Minerals Plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing information relating to the Firm Placing and Placing and Open Offer and the Stage 1 Financing described above, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Tristan Pottas, Investor Relations Manager."
 
On All Fours?  https://www.youtube.com/watch?v=zHt4QS6T2kI
 
The finance package, derisks the Project by a further 40% so the NPV estimated SP once completed should be 50% of  P/SH :-)) The triangulated structure guarantees build & independence.
 
Kongratulations
 
https://www.youtube.com/watch?v=eVQ83Kdr4Dc
 
 

Tags: 

12 Comments

Captain Black's picture

Trump the Trump

Ah, so .. tethered goats ... the blood bath commences. 
 
https://www.youtube.com/watch?v=f3soDMROLJo
 
Top Comment LSE:  "Market likes certainty, which is what we now have.

I'm also relieved this all got sorted out before a potential Trump election win (shudder!!)"
 
SP I  reckon 54p tho 51p would be erm ... spondific ;-) 
Furrballs....
Ah, so ...   33p
27.69/4.165 @ 50%
SP= Mcap/Issue

Captain Black's picture

The Status Quo

 
40% derisked : 40% Firm Placed ... then there's that wee 4.4% ...
Rather, say 15/5. 
Dom diddy do do do....  not for profit eh
 
Is laughing me wee socks off....
 
Hmmmm.  Revolutionary
 
https://www.youtube.com/watch?v=hc51ExPQJcQ
 
Ah, so ....
http://www.robin-hoods-bay.co.uk/robin-hoods-bay/history
 
Confirmation Bias.
 
https://www.youtube.com/watch?v=-ebtjgK8NNU
 
Oh, do come on ... tis Shoot a Goth Weekend
 
http://www.whitbygazette.co.uk/news/goth-weekend-gets-under-way-1-8220293
 
(figuratively speaking)
 
 

Captain Black's picture

SXX: YP "Secures Funding"

http://www.yorkshirepost.co.uk/news/environment/sirius-secures-1bn-of-fu...
 
"A PROJECT by Sirius Minerals to build a Yorkshire potash mine is set to create up to 2,500 jobs after the firm secured a total of 1.2 billion US dollars (£965 million) in funding.
 
The fundraising will go towards the construction of one of Britain’s biggest mines near Whitby..."
 
Whitby Gazette:
http://www.whitbygazette.co.uk/news/1-billion-plan-announced-to-finance-...
 
"Having secured the backing Gina Rinehart’s Hancock British holdings, who committed a £250 million investment into the project last week, the company is now pressing forward with plans which aims to raise approximately £1 billion.
 
Along with Hancock’s backing, a further £400 million will be raised by issuing new shares on the stock market and £350 million by issuing convertible bonds...."
 
"Robert Goodwill, MP for Whitby and Scarborough, said: “I look forward to seeing the many benefits of this project materialise and remain strongly supportive of the positive impact the project can have on the UK economy.”
 
The project will potentially create over 1,000 jobs in Whitby and on Teesside. The mine will intitially aim to produce 10 million tonnes of fertiliser per annum, later potentially rising to 20 million tonnes each year."
 

Benefitz Betty's picture

SXX: Proactive

http://www.proactiveinvestors.co.uk/companies/news/168479/sirius-mineral...

"....“They are a strong partner, not just a financial partner; they are a true development partner in the way they are thinking and planning to operate and help us take this project forward.

 
“They are heavily into agri-investments down in Australia and this is their first investment offshore.
 
“But their experience in how they developed the massive Roy Hill iron ore project, where the financing structure was very similar to what we are just embarking on: (two-stage, with the equity going in first
and the senior debt coming late). They have just walked that path.”
 
The City, meanwhile, was hugely supportive of the equity element of the fund-raise, which included a US$457mln share placing that has been conditionally concluded.
 
It was, according to the Sirius CEO, the culmination of “years of talking and building an understanding of the project” in the Square Mile and beyond its walls.
 
“It was very positive to get our existing institutions and a whole series of new major ones into the company, which is great for the future. So, the reaction was really good,” he said.
 
The placing, open offer and convertible bond ends the involvement of equity holders in the funding phase.
 
The remainder of the funding requirements – called the Phase-Two financing - are expected to be sourced from the debt market.
 
“The whole funding structure was set up for this big financing event to be the one where we would issue equity in the form we have done,” said Fraser. 
 
“We have obviously minimised it with the royalty transaction and the rest of the financing is set up to tap into the debt that will be created.
 
“The whole structure was set up so that the equity raise that has just happened would be the last.”
 
The funding put in place allows Sirius to press ahead with site clearance and provides it the financial wherewithal to sink the shafts and tunnels for the mine.
 
Once up and running the project will churn out an initial 10mln tonnes of a nutrient-rich fertiliser, called polyhalite, with the potential to double output.
 
Sirius has appointed banks that will help it tap the debt markets for up to US$2.6bn as part of its Stage-Two financing.
 
It is also working with the government under the Treasury Guarantee Scheme, which ensures that lenders are paid in full and on time.  
 
“This financing today fills out a lot of the front work and finances the shafts from beginning to end and therefore builds a really strong platform to go to that senior debt financing in the timeframe we need it,” said Fraser.
 
Now, the hard work begins and the Sirius development team is busy “mobilising up” contractors.
 
“The actual first actions on the ground probably won’t be until January with the highways work,” said Fraser.
 
“Basically, the big contractors will now be starting their build-up and mobilisation work in anticipation of getting on the ground and starting work.”
 
 
Captain Qahn's picture

SXX: Slam Dunk

http://www.proactiveinvestors.co.uk/companies/market_reports/168564/proa...

http://dailyquint.com/2016-11-04-liberum-capital-reiterates-buy-rating-f...

http://www.adamsmith.org/blog/one-of-the-reasons-we-shouldnt-have-a-plan...

"That perhaps the planners don't know what they're talking about. We spied this little piece in the Times:

Australia’s richest woman has backed the £3 billion plan to build Europe’s biggest potash mine beneath the North York Moors.

Hancock Prospecting, controlled by Gina Rinehart, the iron ore magnate, is paying $300 million towards constructing Sirius Mienrals’ mine on the national park in return for a share of the revenue and, eventually, a stake in the company.

The deal is the first chunk of financing secured for construction of the $3.6 billion (£2.9 billion) mine which was approved by planners last year. The mine will initially produce 10 million tonnes of polyhalite, a fertiliser, every year.

That Hancock family fortune hasn't been built by just stumbling over some deposit that could be made into a mine. It's been done by very clever work over the decades concerning what is financed and with whom.

This company's addition to this project is a very big feather in the cap of said project. To change industry sector it's a little like inventing some tech good enough that Apple wants to buy into it.

Polyhalide is a bit of an oddity. It's slightly different than the more normal run of the mill raw materials for fertilisers but adaptations can be made without too much difficulty.

Which is where the planners come in. As we can see one of the top end mining companies likes this project enough to plonk down $300 million for a bit of it. The planners, at one point, refused the development licence on the grounds that no one would buy the production from the mine if it were built.

We tend to think that decisions made by those who know what they are doing are preferable to decisions made by those who do not. Of course, this project is not a slam dunk success quite yet but we do know which way we lean on who is right here.

And it ain't the planners. Thus we find our prejudices reinforced - why would we let economic decisions be made by those with no skin in the game and possibly even less knowledge than that?"

http://naturalresourcesforum.com/companies/sirius/

Oooh Nutella ;-))

http://www.adamsmith.org/blog/it-doesnt-matter-who-wins-the-presidential...

Captain Black's picture

SXX : 'Boots on The Ground'

Slightly early for being Proactive, cough. 
 
http://www.proactiveinvestors.co.uk/companies/news/168708/as-dust-settle...
 
"...  Funding was well supported, operations are ready to start
 
Whatever the reaction in the share price, one thing is very clear; ponying up some US$450mln of equity the landmark funding was well supported in the City.
 
It was, according to Sirius chief executive Chris Fraser, the culmination of “years of talking and building an understanding of the project” in the Square Mile and beyond its walls.
 
 “It was very positive to get our existing institutions and a whole series of new major ones into the company, which is great for the future. So, the reaction was really good,” he said in a recent interview with Proactive Investors.
 
Explaining the funding strategy, Fraser added: “The whole funding structure was set up for this big financing event to be the one where we would issue equity in the form we have done,” said Fraser.
 
“We have obviously minimised it with the royalty transaction and the rest of the financing is set up to tap into the debt that will be created.
 
“The whole structure was set up so that the equity raise that has just happened would be the last.”
The funding put in place allows Sirius to press ahead with site clearance and provides it the financial wherewithal to sink the shafts and tunnels for the mine.
 
Sirius has alread appointed banks that will help it tap the debt markets for up to US$2.6bn as part of its Stage-Two financing.
 
Once up and running the project will churn out an initial 10mln tonnes of a nutrient-rich fertiliser, called polyhalite, with the potential to double output.
“This financing today fills out a lot of the front work and finances the shafts from beginning to end and therefore builds a really strong platform to go to that senior debt financing in the timeframe we need it,” said Fraser.
 
Now, the hard work begins and the Sirius development team is busy “mobilising up” contractors. Boots are expected to properly hit the ground in January, starting with highways work.
The in real terms Sirius is now expected to advance the project apace and assuming all goes to plan the share price will, in time, follow events."
 
A-OK.
 

Captain Black's picture

YCR: Mindfulness

http://www.yorkshirecoastradio.com/news/local-news/2146505/poor-water-qu...
https://www.youtube.com/watch?v=HSzx-zryEgM
Ah, so  .... :-)
http://www.yorkshirecoastradio.com/news/local-news/2147191/scarborough-b...
"12:21pm 9th November 2016
A man from Scarborough's been talking to Yorkshire Coast Radio about his role in a new Marvel film.

Gelong Tubten is a Buddhist monk from the Londesbrough Lodge and was used as a meditation coach in the movie Dr Strange.

It starts Benedict Cumberbatch and Tilda Swinton.
As well as assisting on and off the set during filming Gelong attended the film's premiere and press events in Los Angeles and London..
He said:

"I do teach mindfulness in varied situations, but I suppose this was the most unusual. I'm friends with Tilda and she told me she was working on a film which would have a theme around mind training and asked if I'd like to get involved. I said yes but I didn't realise I'd end up there all the time during filming. It was great fun".

A scratch over the Batch?
https://www.youtube.com/watch?v=m1HklglWVZs
 
 
 

Benefitz Betty's picture

SN: The Lodge

Another Gem: -)

http://www.thescarboroughnews.co.uk/news/lodge-sale-symbolic-of-broken-p...

"IF ANY of your readers are still unaware of Scarborough Council's notorious ignorance of, and even contempt for, the town's rich heritage, they might take a look at the property for sale advertisement (Evening News, December 8).

There, Londesborough Lodge, a grade II listed building which for nearly two centuries has figured importantly in Scarborough's history, is described as a "substantial period property previously used for offices".

How sad is that?

Built in 1837 of fine ashlar stone and designed to make the most of splendid views over the Valley gardens and South Bay beyond, along with its contemporary neighbours, the art gallery and Woodend, the Lodge completes and complements a series of high quality mansions on the south side of the Crescent. It is one of the finest jewels in Scarborough's superb architectural crown.

Its name derives from Baron Londesborough (1805-60) who bought the house for his "marine residence" in 1849. He was fabulously rich: his huge estate included East Ayton, Seamer, Irton, Willerby, Flixton, Staxton and parts of Cayton and Osgodby.

His son and heir, the first earl of Londesborough, made an even greater impact on Scarborough. The Londesborough theatre in Westborough disappeared in 1960, but our annual cricket festival started as "Lord Londesborough's Cricket Week", Lady Edith's Drive is named after his wife.

Londesborough Road still runs directly from his Seamer estate into the town. Most famously, the Prince of Wales and future Edward VII, stayed as his guest in the Lodge three consecutive years in 1869, 1870 and 1871.

The third time he even brought his wife, Queen Alexandra. An iron footbridge spanning Vernon Road reminds us of those visits.

To its credit, in 1925, Scarborough Corporation, then a forward-looking body, bought the Lodge and its extensive grounds for 6,000. Four years later its municipal Turkish, Russian and Electro Medical Baths opened there. For the next 44 years Scarborough's tradition of hydrotherapy, which dated from the 1660s, was modernised and practised in the Lodge.

After the closure of the medical baths, nearly 10,000 of ratepayers' money was spent to convert nine of the Lodge's upstairs rooms into Yorkshire's first "tabloid museum" of local history.

But this enlightened experiment lasted only five years: it was condemned for losing money, broken up and put down in the basement for "temporary storage".

That was in 1981; it has never been on public view since.

As an "economy" measure, the council's tourism office was temporarily moved into the rooms formerly occupied by the museum and stayed there for the next quarter of a century. By 2006, after decades of scandalous neglect, vandalism and misuse, Londesbor-ough Lodge was said to be in need of repairs costing "in excess of 350,000". So that the chief executive had to confess that on the market it would not fetch "a great deal of money!"

So having lost its museum of natural history to a creative industries centre where superfluous exhibits from the Rotunda, Londesborough Lodge and Wood End have been expertly buried, the people of Scarborough are now left with a monument to William Smith and dinosaurs.

The town's greatest native geologist is ignored. Even the magnificent model of medieval Scarborough is in "storage". Scarborough has no museum of maritime or social history and no display of its archaeological treasures.

What has happened to the vibrant cultural quarter in the Crescent and the renovated, extended art gallery so frequently promised by those at the town hall?

Dr Jack Binns"

 

Ooh I dunno ... mebbe that medieval model would come in handy

 

 

 

Benefitz Betty's picture

SXX : A Bout In Time

http://www.bbc.co.uk/news/uk-politics-37934784

"Theresa May has promised to work for a "golden era" in the UK's relations with China, as the country's vice-premier visits London for talks.

Ma Kai's trip follows Mrs May's decision after coming to power to delay approval of the part-Chinese-financed Hinkley Point C nuclear power plant.

The project was given the go-ahead, after China warned that "mutual trust" was needed between the countries.

Mr Ma is meeting Chancellor Philip Hammond to discuss investing in the UK.

Speaking before the eighth UK-China Economic and Financial Dialogue got under way, Mrs May said: "I'm determined that as we leave the European Union, we build a truly global Britain that is open for business.

"As we take the next step in this golden era of relations between the UK and China, I am excited about the opportunities for expanding trade and investment between our two countries."

'Mutual benefits'

There will be an announcement that the Chinese contractor CITIC Construction is to invest £200m in the first phase of the £1.7bn London Royal Albert Docks project, headed by the Chinese developer ABP.

And the UK will in turn invest up to £40m in the Asian Infrastructure Investment Bank based in Beijing, for a fund to help developing countries to prepare infrastructure programmes.

Mr Hammond, who is hosting the Chinese delegation at London's Lancaster House, said: "The mutual benefits are clear. China is the world's second-largest economy. UK exports to China have grown rapidly and Britain is home to more Chinese investment than any other European country."

US President-elect Donald Trump has said he wants to apply 45% tariff barriers to Chinese imports in an effort to protect free trade.

Mr Hammond told the BBC: "Britain's always believed that the best way long-term to protect and promote prosperity is free markets and free trade.

"President Trump has just been elected by the American people. He will want to consult with his advisers, talk to officials and I'm sure we will have a very constructive dialogue, as we do with the Chinese, with the new American administration."

He added: "It's about getting the right balance in the global trading system, so that we can have the benefits of open markets, while being properly and appropriately protected."

One of Mrs May's first acts on becoming prime minister during the summer was to order a review of the project to build Hinkley Point C, in Somerset, part-financed by China.

"Writing in the Financial Times in August, Liu Xiaoming, China's ambassador to the UK, said: "If Britain's openness is a condition for bilateral co-operation, then mutual trust is the very foundation on which this is built.

"Right now, the China-UK relationship is at a crucial historical juncture. Mutual trust should be treasured even more."

Sentimental :-)) 

http://www.gazettelive.co.uk/news/teesside-news/sirius-minerals-chinese-...

 

Captain Black's picture

Gina - High Five

"4 May 2017   Sirius Minerals Plc

Issue of shares pursuant to convertible bonds

Sirius Minerals Plc ("Sirius" or the "Company") announces that it has received two conversion notices in respect of the US$400 million convertible bonds due 2023 which were issued by Sirius Minerals Finance Limited as part of the Company's stage 1 financing and announced on 3 November 2016 (RNS number 2246O), pursuant to which it will allot and issue 1,300,390 new ordinary shares of £0.0025 each (the "Relevant Shares"). 

An application has been made for the Relevant Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority (the "FCA") and to trading on the London Stock Exchange plc's main market for listed securities, and dealings are expected to commence at 8.00 am on 5 May 2017.  The Relevant Shares will rank pari passu in all respects with all existing ordinary shares in the Company."

Increasing the shares in circulation to circa 5 mil  one fifth,  Gina's 'Hancock' puts its money 'convertible bonds' to rank alongside other investors.

Sounds fair.... all those bulls must have been having a field day ... mustav more calfs to feed :-))

https://www.youtube.com/watch?v=mkBS4zUjJZo

https://www.youtube.com/watch?v=tQmbDDP0L3M

Oh Dear ...

https://www.yorkshirecoastradio.com/news/local-news/2281896/emergency-se...

Jacksons live on YCR :-)

https://www.youtube.com/watch?v=SHpgJLYqWSY

Erm, Hancocks = 20% of the Co.  no further dilution, less debt and more divs for the potty  people on production..

Long term gains.

Acorns..

Cornerstones.

darn those decimal points.. ;-))

2% ... Eeek. 2.5%

Neat n tidy.

they must have a hundred of em ...

Romans.

Decimation.

"each with equal voting rights"

as thick as the next person ..

 

 

 

Captain Black's picture

SXX: Hole Diggers - AMC

http://siriusminerals.com/work-with-us/jobs/current-vacancies/amc-vacanc...

"AMC is a globally-recognised leader in shaft sinking and has experience with many of the world’s leading potash producers. In addition to site-based roles including engineers, crane operators, welders and electricians they will be recruiting for a variety of different support positions in areas such as accounts, project controls, recruitment, logistics and procurement.

Find out more about AMC and available jobs on their website: www.amc-mining-uk.com.

Forks at the ready ;-)

http://www.amc-mining-uk.com/

fee fi fo ...

https://www.youtube.com/watch?v=58KXLPE7M_s

"responsible for providing vendors with timely and accurate payment and to keep a good rapport with vendors in order to continue successfully purchasing materials and services from our clients, and to help build a solid reputation..."

One for the clerical obsessed ;-0

https://www.youtube.com/watch?v=2ys0OSj4STQ