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Sirius Minerals has unveiled plans to raise £3bn to fund the next stage of its North Yorkshire mine.

Work is continuing on the firm’s Woodsmith mine, south of Whitby , from where product will be transported on an underground conveyor to Teesside.

Sirius currently employs 800 people and says it will create 1,000 long-term jobs at peak production.

The company revealed on Tuesday that it plans to issue new shares and debt to fund the second stage of its development.

Sirius said the financing is another major milestone, alongside its first stage of financing and receiving planning permission.

It said the money would enable the company to fund its project to the point "it generates positive operating cash flows".

The company also revealed that it has been working with investment banking giant JP Morgan Cazenove on the funding.

(Image: Evening Gazette)

Chris Fraser, Sirius managing director and chief executive officer, said the deal would help drive construction at “full speed”.

He said: “In March we paused discussions with prospective lenders to work on an alternative financing proposal with J.P. Morgan Cazenove.

Today we are pleased to announce that, as a result of that work, 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.

“The funding package will bring together equity, convertible bonds, high yield debt, and a US$2.5bn revolving credit facility in a multi-stage, flexible structure that balances the availability of capital with the needs of the project.”

Shares in the company fell in early trading in London following the announcement.

Sirius expects to reach the polyhalite seam in 2021 and to be producing 10m tonnes of fertiliser a year by 2024, supporting more than 2,000 direct and indirect jobs in total.

The company announced last week that it had agreed a deal which will see German agricultural giant BayWa buy up to 2.5m tonnes a year of its fertiliser polyhalite.