Mining firm Sirius Minerals announced a £2.9bn financing fund for their fertiliser project in Yorkshire.
Shares in the FTSE 250 company dropped by 18% to 17.9p on Tuesday after the mining firm announced the project will cost more than previously planned.
The North Yorkshire fertiliser mine had expected to cost £2.3bn, then it was to cost £2.8bn over a rise in construction costs, now the cost has risen to £2.9bn.
JP Morgan backed the financing which is to be used to build a polyhalite mine, and Polyhalite can be used as fertiliser and other industrial uses.
Chris Fraser, managing director and chief executive of Sirius said, “We are launching a comprehensive markets-led solution for our funding requirements which will enable Sirius Minerals to complete the development of its mine and unlock what we believe to be the world’s largest known high-grade polyhalite deposit.
“Today’s announcement provides a clear pathway to a fully financed project in the months ahead, while enabling us to progress construction at full speed.”