Mining giant eyes potash project takeoverpublished at 11:28 Greenwich Mean Time 8 January 2020
Sirius Minerals, the company behind plans for a £4bn potash mine, in North Yorkshire is considering a takeover bid.
The mining giant Anglo American said it was in advanced talks about a possible offer of 5.5p per share.
It would value Sirius Minerals at £386m, but mean a significant loss for thousands of smaller shareholders.
The future of the mine has been in doubt after Sirius failed to raise cash to unlock funding.
It had hoped to raise $500m (£403m) with a bond issue in September to enable it to borrow $2.5bn (£1.9bn) from banks.
A spokesman said: "Anglo American identified the project as being of potential interest some time ago, given the quality of the underlying asset in terms of scale, resource life, operating-cost profile and the nature and quality of its product."
Shares in Sirius rose by 33% to 5.4p on the news of the offer, however that is significantly lower than the 22p shares were worth a year ago.
The business has thousands of small shareholders, many of whom live in the area the mine is being built.