Sirius Minerals Share News (SXX)

(Sharecast News) - Sirius Minerals said on Friday that it has secured a new $250m funding deal that should give it sufficient funding to the second quarter of 2019.The company has agreed to an amendment to a royalty arrangement it entered into back in October 2016 with Australia's Hancock Prospecting. Pursuant to the amendment, Hancock has agreed to a drawdown in relation to the $250m royalty component of the minerals royalty deed (MRD), with the proceeds provided no later than 19 September 2018. Sirius said the $50m equity component of the MRD will be provided once stage 2 financing commitments are obtained to fully fund the initial development of the North Yorkshire polyhalite project .The company said the royalty drawdown provides sufficient liquidity to fund the project into the second quarter of 2019, when the proceeds of the stage 2 financing will be required.Managing director and chief executive officer Chris Fraser said: "The drawdown of the Hancock Royalty is another important milestone as we develop into a leading fertilizer business. We are delighted to have an experienced partner in the mining industry aligned to Sirius and one that has a growing, long term agricultural interest. The long-term nature of the royalty investment is well aligned to the underlying characteristics of this world-class, long-life asset."