(Reuters) - Sirius Minerals Plc (SXX.L) will slow down development of its North Yorkshire polyhalite project and scrap a planned $500 million bond sale, the company said on Tuesday, adding that the British government declined to provide support to facilitate the financing of the project.
Sirius also said it would conduct a review in the next six months to seek funds required for the project.
The company said it had requested the government to provide a commitment to enable the issue of up to $1 billion of guaranteed bonds in the event it was unable to issue unguaranteed bonds to refinance its revolving credit facility.
“The Government has reviewed the case for the provision of the support requested to facilitate the financing of the Project and has decided not to provide the support requested,” Sirius Minerals said in a statement.
“The company believed this commitment would have enabled the company’s financing to be delivered as planned,” it added.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty