Sirius Minerals has failed to secure an investor that would save it from an acquisition by parent company Anglo American.
The embattled potash company was hoping to raise a $US680 million ($1 billion) funding package to cover the initial scope of work at the Woodsmith mine in North Yorkshire, England and back Anglo American’s takeover proposal.
Sirius would then require a further $US2.5 billion of capital to reach a ramped up production capacity of 10 million tonnes a year.
Without an investor now, the board of Sirius unanimously recommends that Sirius shareholders vote in favour of the Anglo American takeover.
Sirius has been unsuccessful in raising sufficient funds to complete its main project, despite backing from numerous investors including Gina Rinehart.
The fertiliser company reported an operating loss of £14.3 million ($27.8 million) for the half year ended June last year, up from £10.8 million in the prior corresponding period.
Sirius stated in September last year that it would need to secure additional external financing to continue operating after March 2020.