§ York Potash Foundation (the "Foundation") established to provide funding for the local community in North Yorkshire
§ Sirius to pay an annual royalty of 0.5% of revenues from the York Potash Project (the "Project") to the Foundation, estimated to be £3 million at Phase 1 production and up to £9 million at Phase 2
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce the launch of a significant community funding initiative - the York Potash Foundation.
The York Potash Foundation has been established to allow the local community to benefit from the York Potash Project by providing funding to local projects across a wide range of areas including community facilities, educational projects and environmental initiatives. The Foundation will be run by an independent board of Trustees and is currently seeking charitable status.
The Company will contribute an annual royalty of 0.5% of revenue from the Project to the Foundation. Based on estimates from the Detailed Scoping Study announced on 30 April 2012, the annual payment could be approximately £3 million at Phase 1 production and up to £9 million at Phase 2. In addition to the annual royalty from production, an initial start-up fund of £2 million will be contributed by the Company into the Foundation on the formal commencement of main construction of the Project.
Chris Fraser, Managing Director and CEO of Sirius said:
"York Potash is a world-class project of national importance and the Foundation provides a direct and lasting way to deliver significant funding for the local community in the project area.
"The creation of the Foundation has been a key component of our thinking from the early stages of the Project. The Board and the York Potash team are delighted to establish this important legacy for the local area."
About the York Potash Foundation
The York Potash Foundation has been set up as a company limited by guarantee and will be seeking charitable status which will "asset lock" its income and work for the charitable purposes.
The Foundation's objectives are to:
· advance education including by supporting projects and training that benefit people from the area of benefit by enhancing their skills;
· promote the general health and well-being of the community;
· advance environmental protection and improvement including by enhancing the local landscape;
· advance citizenship and community development including by improving community facilities to bring people in the area of benefit together; and
· relieve those in need because of financial hardship by virtue of being out of work, particularly the long-term unemployed, by helping them to gain skills.
The Foundation's broad objectives provide a wide range of areas where it can support community projects and these are expected to range from bursaries, scholarships or skills training for local people to public realm improvements, environmental initiatives and community building projects.
A contract between the Company and the Foundation is currently being drafted to confirm the commitment to the local community and ensure the longevity of funding to the Foundation throughout mining operations at the Project.
The Foundation will be independently run, with York Potash Ltd retaining some involvement to ensure the Foundation continues to pursue its intended purposes. Of the total of three members (effectively shareholders), two will be independent and the third is York Potash Ltd. It will also be overseen by seven unpaid Trustees, with three being appointed by York Potash Ltd and four by the independent members.
The majority of the charitable donations and grants from the Foundation will occur within the boundaries of Scarborough Borough, Redcar and Cleveland Borough and the North York Moors National Park (the "area of benefit"). In addition to focusing funding on locations close to the Project operational area, the Foundation will have the ability to support projects and charities outside the area of benefit.
Further details and documentation will be available on the project website (www.YorkPotash.co.uk) shortly.
For further information, please contact:
Sirius Minerals Plc
(General Manager - Commercial)
Tel: +44 8455 240 247
NOMAD/ Joint Broker
Macquarie Capital (Europe) Limited
Liberum Capital Limited
Jefferies Hoare Govett
Pelham Bell Pottinger
Michael Rawlinson, Clayton Bush
Peter Bacchus, Thomas Rider
Tel: +44 20 3037 2000
Tel: + 44 20 3100 2222
Tel: +44 20 7029 8000
Tel: + 44 20 7861 3232
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland and Western Australia).
Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.
Forward Looking Statements
This announcement contains certain "forward-looking statements". These statements, which sometimes use words such as "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Company's intention, beliefs and current expectations and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, the interpretation and actual results of the specific studies undertaken by expert consultants, changes in project parameters as plans continue to be refined, future costs estimates, possible variations in grade or recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted parties to perform, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents.
Sirius does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.