or Immediate Release: 26 August 2009, 7AM
Sirius Exploration Plc
("Sirius" or the "Company")
Dakota Salts - Exercise of Options
Further to the announcement of the 24 June 2009, Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the UK-based diversified mining and exploration holding company focused on North America and Australia, is pleased to announce that it has exercised its two options to acquire the remaining 49% of Dakota Salts LLP ("Dakota Salts") from Transparent Holdings Ltd. ("Transparent") and Sojourn Energy LLC ("Sojourn").
Under the terms of the option agreements, Sirius has acquired Transparent's 24% stake in Dakota Salts for 9,600,000 new ordinary shares of 0.25p in Sirius (new Sirius ordinary shares") and Sojourn's 25% of Dakota Salts for 10,000,000 new Sirius ordinary shares. In aggregate, the total consideration for the exercise of the options, being 19,600,000 new Sirius ordinary shares, is £1,323,000 based upon the closing mid-market price per Sirius ordinary share on AIM of 6.75p at the close of business on 24 August 2009.
Application will be made for the new ordinary shares, which will rank, pari passu, with all existing ordinary shares, to be admitted to trading on AIM and trading in such shares is expected to commence on or around 2 September 2009.
Following the issue of the new ordinary shares, the total number of shares in issue will be 290,405,150. The new Sirius ordinary shares being issued will represent 6.75 per cent. of the enlarged issued share capital.
Dakota Salts holds mineral leases in excess of 5,000 acres in North Dakota, USA, allowing for the exploration and extraction of salt and potash and the creation of caverns for the storage of compressed air for electricity generation or the storage of natural gas and other hydrocarbons. As per the latest unaudited management accounts for Dakota Salts, in the 10 month period ended 31 July 2009 Dakota Salts reported a Loss for the period of $220,230 and, as at 31 July 2009, had Net Liabilities of $220,230.
North Dakota is the base of one of the largest wind farm, electricity generation projects in North America with capital investment expected to exceed $4 billion. Dakota Salts' properties are likewise well placed in relation to the US's third largest natural gas intake pipe-line, The Portal-Sherwood Intake.
The development budget for the next phase of the Dakota Salts project will be covered within the Group's existing cash resources. Following the completion of the assessment period, the Board will decide on the most appropriate route to take to maximise the value for shareholders.
Richard Poulden, Chairman of Sirius, commented:
"Completing the Dakota acquisition is a significant development for the Company and follows
our recent £2.8 million placing exercise. The Board not only views the long term outlook
for the commodities of potash and salt as exceptionally positive, but Dakota Salt's lease
area is ideally positioned to allow us to continue discussions regarding the future use of
the salt caverns left by solution mining as major energy storage facilities."