Sirius Minerals has suspended a $500m (£410m) fundraising round after the stock market plunged as the trade war between US and China escalates.
The funding was being raised to finance the development of a £2.5bn mine, near Whitby, North Yorkshire, as well as a processing plant on Teesside.
The company said it has suspended the funding round due to "current market conditions".
The decision was made after the ongoing trade war between US President Donald Trump and China shocked the stock market on Monday.
Without finding more cash Sirius only has enough money to continue the development of the mine until September.
Following its announcement's the company's share price crashed 28% to 10.5p per share.
A spokesperson for Sirius said: "The project is currently on target to achieve first polyhalitein 2021 and we have enough cash to keep going at current pace until the end of September.
"So we will relaunch the high yield bond in the coming weeks, when market conditions have improved.
"This $500m bond will allow us to access a $2.5bn credit facility from JP Morgan, which will give us enough money to complete the project."
Earlier in the year the company announced it had secured a £2bn credit facility with JP Morgan to fuel its development plants, but the deal came with a caveat that Sirius must raise £410m on its own before the funds were released.
The stock market's poor performance have scuppered the company's plans to raise the cash, with Wall Street suffering its worst day of 2019.
The final stage of financing is due to fund mining machine excavation works over the next 12 to 24 months that will take Sirius to the point where it reaches first polyhalite.
The project is set to generate around 2,000 direct and indirect jobs at peak production.
