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If you are bored.

Skinny, I fell asleep reading it .... zzzz
TT

Directorate change.

Directorate Changes

· Lord Hutton of Furness appointed as Non-Executive Director; and
· Richard Poulden steps down as Non-Executive Director

This sounds like " SERIOUS " good news !


23 January 2012


Sirius Minerals Plc
("Sirius" or the "Company")


SM2 Preliminary Coring Result


§ Two distinct seams of overlapping massive polyhalite intersected

§ 67 metres of total massive polyhalite mineralisation across the hole

§ 33 metres of massive polyhalite in the materially shallower "Shelf" bed that is currently being mined at the Boulby Mine

§ 34 metres of massive polyhalite in the deeper "Basin" bed, as encountered at SM1



The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce the completion of coring at SM2, the second new borehole completed at the York Potash Project.



Chris Fraser, Managing Director and CEO of Sirius said:



"We are delighted SM2 has delivered another world-class and very significant result for the York Potash Project. The confirmation of two thick and potentially high grade seams, the upper or "Shelf" seam and the lower or "Basin" seam, present us with the exciting possibility of sinking the mine shafts only to the shallower Shelf seam, which would potentially lower the shaft's construction costs and shorten the construction time. This presents an opportunity to significantly improve the project's economics and value to shareholders.



"An important element of our drilling programme has been to add information to, and refine, our interpretation of the deposit and the nature of the polyhalite beds within it. This hole, which we believe to be in the transition zone between the Fordon Evaporite Shelf and Basin, confirms the existence in this area of two overlapping seams of massive polyhalite."



Completion of SM2 Coring



Drilling of SM2 (Howlet Hall) commenced on 2 September 2011, with a successful change from the smaller top-hole rig (which then moved onto SM3) to the larger coring-rig on 8 November 2011. As announced to the market, a series of fluid-loss-zones were encountered during the drilling of the section between about 947 and 1,175m. This slowed the progress of this hole as each loss zone was repaired to enable drilling to proceed. Due to the delays and ongoing losses the decision was made to not core the Boulby and Sneaton sylvite seams. Coring of the critical Fordon Evaporite section was commenced on 13 January 2012 and successfully completed on 21 January 2012, proceeding from 1,412 metres to 1,598 metres below surface with 100% recovery; fully justifying the time and care taken earlier.



Two distinct massive polyhalite seams have been successfully cored. The first in the upper near-shore facies (i.e. depositional environment) of the Fordon Evaporites (the "Shelf"), and then approximately 82m below that, a lower massive polyhalite seam apparently correlating with that intersected at SM1 (drilled further into the heart of the Fordon Basin). The intervening strata consist of mostly very low grade polyhalite mineralisation, containing occasional bands of massive polyhalite with individual thicknesses of up to 1.5 metres (these have not been included in this Summary).



The table below gives preliminary results based on visual examination of the cores in the field. Detailed results will be provided following wireline logging of the borehole, examination of the core under laboratory conditions, mineralogical and chemical analysis.



Summary Preliminary Results - SM2 (collar: 488424.89 E, 506841.87 N, 143.22m AOD)



Polyhalite Seam
Depth from (metres) 1
Borehole Intersection
Apparent Dip
True Thickness
Geological Comments



Sea-Level
Surface
(metres)
(average degrees)
(metres)



Upper ("Shelf")
1,276.58 to 1,310.38
1,419.80 to 1,453.60
33.80
10
33.3
§ Massive polyhalite rock with minor veining and replacement by halite



1,310.38 to 1,392.10
1,453.60 to 1,535.32
81.78




§ Mostly very low grade polyhalite; with halite, anhydrite, and occasional bands of up to 1.5m of massive polyhalite

Lower ("Basin")
1,392.10 to 1,427.56
1,535.32 to 1,570.78
35.46
15
34.3
§ Massive polyhalite including a central section of 7.2m (true) where the polyhalite is veined and patchily replaced by halite and anhydrite


Notes:

1. Depth from sea-level shown due to the varying topography of the York Potash drill sites.

2. Thickness based solely on visual and geological interpretation of the key mineralised zones. Full chemical assays are required to confirm the thickness interpretation and the potassium grades of the mineralisation.

3. "Massive polyhalite rock" refers to the visual interpretation of the cores as being apparently high purity polyhalite. However, grade can only be confirmed with the completion of the full chemical assays.



Preliminary Geological Interpretation



A significant amount of historical data provides the foundation for our geological model. The western edge of the Fordon Basin is known to have been a shallow-water depositional "shelf" in Permian times, in which a condensed sequence of evaporites was deposited. Numerous holes have been drilled through the shelf for gas exploration, and these repeatedly demonstrated the existence of a thick, relatively high grade (based on gamma logs), polyhalite seam.



The main part of the Fordon Basin, as explored by SM1 and historical boreholes, is believed to have been a deeper-water "basinal" depositional environment. It also contains a thick, high grade, deposit of massive polyhalite towards the bottom of the sequence. This was confirmed in SM1, where Sirius intersected the seam, which included an aggregated thickness of 23.3 metres (true-thickness) of 95% polyhalite (27.5% K2SO4).



Prior to completion of SM2 there were two theories as to the nature of the transition zone between these two high grade beds. One was that they were effectively the same bed that was "draped" over the ramp zone interface between the shelf and basin areas. The second theory was that they were two separate but broadly contiguous beds. It is our current belief that SM2 has proved that the second theory of the structure is correct. Moreover SM2 has proved that in this part of the transition zone there are two beds of massive, apparently high grade, polyhalite, approximately 82m vertically apart and that these appear to represent overlapping "shelf" and "basinal" beds.



The implications of this are being analysed, but it is clear that there is potential to construct the shafts down to the shallower (i.e. closer to surface) "Shelf" seam and that this represents a potential to significantly improve the value of the York Potash Project. At a depth from surface of approximately 1,420m, the potential to reduce the costs of the shafts and reduce the construction timeframes of the project are significant. Alan Auld Group, the engineering firm working on shaft designs for York Potash, is now factoring this into the reports it is preparing for inclusion in the Detailed Scoping Study.

For all you people who are asking yourself, " What the hell is Polyhalite, here is Wikipedia's' definition.


Polyhalite is an evaporite mineral, a hydrated sulfate of potassium, calcium and magnesium with formula: K2Ca2Mg(SO4)4·2(H2O). Polyhalite crystallizes in the triclinic system although crystals are very rare. The normal habit is massive to fibrous. It is typically colorless, white to gray, although it may be brick red due to iron oxide inclusions. It has a Mohs hardness of 3.5 and a specific gravity of 2.8.

And there it is.

Proposed placing to raise approximately £50million


Proposed placing to raise approximately £50 million

Highlights

· Sirius to raise approximately £50 million (approximately US$78 million) through a proposed placing (the "Placing") of new ordinary shares ("Placing Shares") with institutional and other investors

· The net proceeds from the Placing will be used to accelerate the development of the York Potash Project and provide funding to see the project through to the Definitive Feasibility Study ("DFS")

· Russell Scrimshaw, Chairman of Sirius, has indicated his intention to subscribe for approximately £3.4m of Placing Shares

Chris Fraser, Chief Executive of Sirius Minerals Plc said:

"Following on from the very encouraging results from our first two new holes and the evidence from the second hole that it may be possible to develop the mine with a lower cost shaft than had originally been envisaged, we are keen to further accelerate the project's development programme.

"With the backdrop of continuing uncertainty in global markets we have decided to raise all of the funding necessary to take the York Potash Project through to the completion of its Definitive Feasibility Study. This will allow us to fast-track the project development without any funding constraints so that the project can be brought into production as soon as possible."

Background to the Placing

Since the acquisition of the York Potash Project in January 2011, the Company has successfully drilled two boreholes (SM1 and SM2) and confirmed the presence of the three seams of potash mineralisation.

As a result of the better than expected assay results for the SM1 cores and the positive indications following the initial geological and visual inspection of the SM2 cores, the Company has been reviewing ways in which it can accelerate development of the York Potash Project. The Board has concluded that, to continue with value creation for shareholders and to accelerate the development of the York Potash Project, it requires the additional funds to be provided by the Placing to take the Project through to the completion of the DFS.

Use of proceeds

The net proceeds from the Placing will be used to:

o accelerate the Company's drilling programme at the York Potash Project by providing the funding to drill, core and assay up to 8 additional bore holes;

o complete a detailed scoping study in March 2012;

o announce a maiden resource in April 2012;

o conduct process testwork, including necessary pilot plant programmes, to select and develop the preferred process route for the project;

o complete the DFS;

o secure options over additional mineral and land rights; and

o meet ancillary costs including research and development, corporate overheads and general working capital.

Details of the Placing

Sirius Minerals Plc announces today its intention to conduct a placing to raise gross proceeds of approximately £50 million (approximately US$78 million) (the "Placing") through the issue of Placing Shares at a price to be determined in the book-building process (the "Placing Price").

Russell Scrimshaw, Non-Executive Chairman of Sirius, has indicated his intention to subscribe for approximately £3.4m of Placing Shares at the Placing Price.

The Placing is being conducted, subject to the satisfaction of certain conditions, by way of an accelerated book-building process by Macquarie Capital (Europe) Limited ("Macquarie") and Liberum Capital Limited ("Liberum") acting as joint bookrunners (the "Joint Bookrunners"). Details of the number of Placing Shares and the Placing Price will be announced as soon as practicable after the close of the book-building process.

The books for the Placing will open with immediate effect. The books are expected to close no later than 3 p.m. (London) today. The timing of the closing of the books and the making of allocations may be accelerated or delayed at the Joint Bookrunners' sole discretion. The Appendix to this Announcement contains the detailed terms and conditions of the Placing. The Placing is not being underwritten by the Joint Bookrunners or any other person.

Qualifying investors who choose to participate in the Placing by making an oral and legally binding offer to acquire Placing Shares, will be deemed to have read and understood this Announcement in its entirety, including the Appendix, and to be making such offer on the terms and subject to the conditions contained herein and to be making the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

The Placing Shares will be issued credited as fully paid and will rank pari passu with the existing issued ordinary shares in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue. The Placing is being made on a non pre-emptive basis to enable the Company to further develop its institutional shareholder base as an essential part of the group's further development.

Application will be made for admission of the Placing Shares to trading on the AIM market of the London Stock Exchange plc ("AIM") ("Admission"). It is expected that Admission will take place and that trading will commence on AIM at 8.00 a.m. on or around 31 January 2012 (the "Closing Date") and in any event no later than 13 February 2012.

The Placing is conditional, among other things, upon Admission becoming effective. The Placing is also conditional upon a placing agreement made between the Company, Macquarie and Liberum becoming unconditional and not being terminated prior to Admission in accordance with its terms.

Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix to this announcement (which forms part of this announcement) (together, the "Announcement").

I'm not sure about the bit I've highlighted - does that mean that there isn't a strong demand for the new shares and that they will set (lower) the price accordingly?

This is great news - topped up large here - screaming buy to me - will transform SXX :-))))))

You didn't highlight this bit Skinny:- "· Russell Scrimshaw, Chairman of Sirius, has indicated his intention to subscribe for approximately £3.4m of Placing Shares" At least he is willing to put his pot where his potash is! I suspect that they knew that today's RNS would push the sp down and so make it easier for the placing. Just a thought!

I've got a limit in just shy of 20p - I guess the strike price will be around 20-21p ?

I wonder if it is really a show of solidarity by RS to buy in the event of a weak take up by investors. It may be he is hoping that he will not have to take up that many. Either way, I can't see this being much of a problem for SXX, but this is a long term project and I can see the sp being range bound for a while.

Well certainly Gibby wouldn't want to be out of this one! ;o)

kim - lol yes thanks i wouldnt and am not - i reckon the placing is around 22p ish

RS taking £3.4M did not decide that lightly and certainly not to just shore up the placing - that is a lot of personal cash

The wording is important, imo. It leaves his options open. "has indicated his intention to subscribe for approximately......"

thanks for pointing that out HC i realised that cheers

notice lots of stops being triggered

any news of the ratio on offer yet?

no i believe the process ends 3pm today - depends on the bids received from the invited bidders including russell scrimshaw - in fact it is good the chairman is bidding otherwise may be placed too low sp!! the bookrunner (macQ & liberum) will determine the price in the end and be announced later today or tomorrow most likely

gibby - as Harry has pointed out - the wording sounds a bit of a "get out of jail free card".

skinny - in a way yes - i expect it depends how much the other bidders go up to and what his limit is

in the meantime whether he goes ahead or not the potential of sirius is so huge it dont really matter and the chairman has already invested about £4M of his family wealth already without the further £3.4m potential announced today :-))))

gonna end the day blue here - well chuffed with my early top up today :-)))))))0

kerrrrrrrrrrrrrrrrrrchinnnnnnnnnnnnnnngggggggggggggggggggg

gla