Trades and observations from a British contrarian stock investor

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Monday, January 17, 2011

Winter depression eased by Sirius & York Potash deal

I was reading yesterday that scientifically today is the most depressing day of the year. With the rain pounding down today, I agree with them! But fortunately a couple of good RNS's from Sirius Minerals (sxx) raised the spirits somewhat this morning!

The company announced today that it had agreed to buy York Potash Ltd., which owns mineral rights covering roughly 600 sq km of land in the north east of England for £25 million in shares.

The area in Yorkshire has been producing potash since 1973 and it has been estimated it could contain between 3.3 billion and 6 billion metric tons of polyhalite, a key source of potash, "While the York potash project is still at the early stages of exploration and assessment, the directors believe the potential of the project is significant,"

York Potash's founder Chris Fraser has been appointed as the new chief executive.

With a bit of luck rather than judgement I bought in on Friday with the North Dakota salts story beginning to unfold. So the news today is a welcome and positive surprise. Sirius is currently up 9 percent at around 18p.
Posted by Contrarian Investor UK at 9:12 AM
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