The news sent Sirius shares soaring by 9.6% to 19.7p come Tuesday afternoon.
In a statement, the UK mine developer said the new proposal contains an alternative senior debt structure which would replace the structure envisaged in the prior negotiations, that began back in 2016.
“The company believes that the alternative proposal potentially offers a more flexible and attractive solution to its stage 2 financing requirements and therefore it is pausing discussions with its existing prospective lenders to pursue the alternative proposal,” Sirius said in a statement.
“A number of options for the additional non-senior debt financing requirement, as previously outlined in the company's announcement of 6 September 2018, continue to be progressed.”
Sirius told investors that it is working to obtain firm commitments for the new proposal and any additional financing before the end of April.
“We think this gives some clarity around the delays in debt financing from a top-down view looks a simpler solution with only one party to deal with,” said Liberum analysts Richard Knights, who repeated his ‘buy’ recommendation.
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