British multinational mining company Anglo American are to step in to save a mining project and has tabled £405m to buy share of Sirius Minerals.
The move could save thousands of jobs at Sirius but, it is likely to wipe out most of the money affecting thousands of small investors that have paid into the project.
Anglo American has valued each share for Sirius at 5.5p compared to the 22.38p a year ago however, the shareholders are yet to give their approval.
Sirius chairman Russell Scrimshaw said on Monday, “Four months ago, following the setbacks in the bond market, we took the difficult decision to slow the pace of development of our project and initiate a strategic review to reassess how best to unlock the long-term value for our shareholders, the community, the UK, and our customers all around the world.”
He added, “We acknowledge that to many shareholders our decision as a board to recommend this offer will have come as a shock.
“Your board deeply regrets that we could not deliver the complete stage two financing in 2019 despite a very broad and thorough process.”
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