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Sirius Minerals could be handed a lifeline from the Government to help solve its major cashflow problems.

The company behind the multi-billion pound fertiliser mine and Teesside processing plant has until the end of September to sell £410m in bonds, which would unlock the further £2bn needed to take the project over the finish line.

Sirius was forced to suspend a fundraising offer to the markets last month, blaming difficult market conditions - but now PM Boris Johnson has said he wants to help cut the risk for investors, according to reports.

Last month Teesside MPs called on the Government to underwrite some of the financing for the project, which is expected to create 2,000 jobs at peak production.

(Image: Ian Cooper / Teesside Live)

Now their pleas could be answered.

Sirius says it has enough cash to keep tunnelling the mine at its current speed and remain "on time and on budget" until the end of the quarter.

It has not confirmed whether the Government will step in.

Investment bank JP Morgan will lend the remaining funds if the mining firm can raise its own cash first.

Chris Steward from stockbrokers Redmayne Bentley, said the deal with the investment bank would not be the only option for Sirius - but the backing of the UK's Government would "clearly be helpful".

"Everyone talks in dramatic terms," he said. "But in reality if they're not getting the money borrowed they can do some equity raising.

"One would hope Sirius is looking at other options.

"Sirius talked about waiting until the markets improve, but with Brexit and Trump's tariffs, the idea that things will improve is optimistic.

"The government has been very supportive; why wouldn't they be, for a project like this?

"If they're saying 'we will underwrite', it is a big game-changer for Sirius. It would clearly be helpful to add in the weight of the UK government."

(Image: Sirius)

Many of the mine's thousands of shareholders lost out as the Sirius share price tumbled last month.

One chemical worker from Teesside "lost a fortune" after investing thousands in Sirius using an old pension pot - but claimed he would invest again in the project.

"The government should support Sirius," he said. "We are supposed to be the Northern Powerhouse.

"It could bring in billions of revenue but nobody knows what's happening because of Brexit."

(Image: Gazette)

He continued: "I invested because it was a guaranteed income.

"I'm no expert, I thought like everybody else it would make a quick buck.

"You think 'I'll have a play'.

"Long-term, it will fly. But people want their money today.

"Until it's built, it will be up and down while finances are put in place, things will go overdue, things cost more than they initially thought.

"I got out at 17p one week before it dropped to 9 or 10p and reinvested elsewhere.

"I lost a fortune.

"But I would definitely invest in the project again."