Sirius Minerals share price soars after Anglo American weighs £386 million rescue deal

The UK-based fertiliser development company has seen its shares climb more than 30% on Wednesday morning as it entered advanced talks with Anglo American over a potential rescue deal.

Sirius Minerals has seen its share price rally by more than 30% on Wednesday morning due to a last-minute rescue bid from Anglo American that could save the company from the brink of collapse.

The British multinational mining company said that it was in ‘advanced discussions’ with Sirius Minerals over a potential cash offer for the business of 5.5p a share, valuing the Yorkshire-based fertiliser developer at approximately £386 million.

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Sirius Minerals management recommends Anglo American offer to shareholders

The deal on the table by Anglo American equates to a 34.1% premium to the stock’s closing price on Monday.

Sirius Minerals management said in a statement on Wednesday that Anglo American’s offer of 5.5p will be recommended at that price to shareholders, so long as it can secure assurances around jobs and other ‘stakeholder interests’.

Under UK takeover rules, Anglo American has until February 5 to make a firm offer for Sirius Minerals or wait six months to return with another offer.

‘Anglo American believes that the possible offer could provide certainty to Sirius’ shareholders, whilst Anglo American brings the financial, technical and marketing resources and capabilities to progress the project over time,’ Anglo American said in a statement.

‘This should also be in the interests of Sirius’ broader stakeholders including employees and customers.’

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Anglo American offers lifeline to Sirius Minerals

The rescue deal on the table represents a lifeline for Sirius Minerals, a company that has struggled to raise the necessary funds it needs to complete its two-stage mining development.

The project involves creating two 1.5km shafts and transporting materials from the site to a port on Teeside via a 37km tunnel.

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