11 Jul 2012 07:00
11 July 2012
Sirius Minerals Plc
Regional Growth Fund Update
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company"), the globally diversified Potash development group, announce an update on the Regional Growth Fund Grant ("RGF Grant"). The Company has decided to not pursue the offer of an RGF Grant of £2.8 million from the Department of Innovation and Skills ("BiS") for the creation of the Sirius Global Centre of Excellence in Applied Innovation in Geoscience ("SCI-AG").
The York Potash Project has significantly advanced since the application for the RGF Grant was made in July 2011. The Board has decided that continued focus on the accelerated development of the York Potash Project is higher priority than creation of the SCI-AG in the form envisaged in July 2011.
The Company is currently working with its advisers to further analyse the UK Research and Development ("R&D") tax incentive system to determine potential quantum of claims for activities undertaken to develop the York Potash Project. From initial analysis performed, it appears the potential benefits to the Company from the R&D system are greater than the RGF Grant and under certain scenarios the Company would not be able to benefit from both.
In addition, the Company believes the advancement of the required skills can be better achieved outside the commitments of the RGF Grant for SCI-AG. For example, the Scarborough Borough Council has submitted its own RGF application for approximately £15 million to prepare local people and businesses to take advantage of opportunities that will be created through the York Potash Project, as well as other developments in the area including the offshore wind proposals. If the bid is successful, the Company may benefit from elements of the training programme which would be targeted at developing engineering and construction skills through apprenticeships, graduates, adults with transferable skills and employees for potential supply chain companies.
Chris Fraser, Managing Director and CEO of Sirius said:
"The Company would like to thank BiS and their staff who helped Sirius work through the details of our application. The rapid evolution and development of the York Potash Project has led us to believe we will create greater shareholder value focussing on our singular goal of achieving production from York Potash as soon as possible. The Company remains committed to pursuing innovation and skills and will work closely with a range of external bodies to achieve these aims."
For further information, please contact:
Sirius Minerals Plc | |||
Peter McLennan(General Manager - Commercial)
| Tel: +44 8455 240 247
| Email: info@siriusminerals.com | |
NOMAD/ Joint Broker | Joint Brokers | Joint Brokers | Media Enquiries |
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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. It is developing the flagship York Potash Project in North Yorkshire, United Kingdom (North Yorkshire) and holds properties in 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.