Sirius Minerals PLC (LON:SXX) told investors that it has now signed two major construction contracts for the company’s mine development programme in Yorkshire.
"The signing of the contracts for the remaining tunnel drives and the materials handling facility at Wilton are significant steps forward for the business with almost all procurement now complete,” said Chris Fraser, Sirius managing director.
At the same time, Sirius has also revised its capital requirement estimates for the project, adding US$400mln to US$600mln which takes the total requirement (including contingency) to US$4.16bn.
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It comes as the company finalised procurement and associated risk allocations.
Sirius said it will now review the most cost-effective and efficient sources of capital.
Fraser added: “The expected increased funding requirement coming from this process reflects an optimisation of the MTS tunnel design and a significantly improved risk allocation for Sirius to support the senior debt financing.
“The project's economics remain extremely compelling and we are confident they support the expected additional funding requirement."