Sirius Minerals has shelved a $500m (£400m) bond issue, raising doubts over plans to construct a giant fertiliser mine in North Yorkshire.
Shares in the mining firm fell by more than 50% in early trading, after the company said it would be launching a strategic review of the project and scaling back production at the site.
The London-listed business said the 海角视频 Government rejected an appeal for $1bn dollars in bonds.
The company added that its major bond offering cannot go ahead "in current market conditions" and said it would launch a "comprehensive" review over the next six months to try to find different ways to secure the necessary funding for the project.
Sirius also said that, although it has enough cash to cover the review process, it will also have to return $400m (£322m) it raised through a bond earlier this year.
Last month, Sirius said it could run out of cash by the end of the year if it did not secure the necessary funds to unlock a $2.5bn (£2bn) credit facility from JP Morgan.
The funding would have "enabled the company's financing to be delivered as planned" for the potash project which would deliver hundreds of jobs for the North Yorkshire and Teesside areas, Sirius said.
Chris Fraser, managing director and chief operating officer of Sirius, said: "Due to the ongoing poor bond market conditions for an issuer like Sirius we have not been able to deliver our stage 2 financing plan.
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"As a result, we have taken the decision to reduce the rate of development across the project in order to preserve funding to allow more time to develop alternatives and preserve the significant amount of inherent value in this world-class project.
"This is the most prudent decision to give the company the time necessary to restructure its plans to move the project forward."
Graham Spooner, investment research analyst at The Share Centre, said: "The long-awaited news from Sirius Minerals regarding its future financing this morning will have made difficult reading for the raft of private investors who were attracted to the first major mine in England for a long time.
"With cash running out fast, investors will be fearing for the future of the mine and remain cognisant that the recent history of mining in the 海角视频 has been littered with failures."
Shares in the company fell 55% to 4p in early trading.
Henri Murison, Director of the Northern Powerhouse Partnership said: "If the Government is truly serious about building a Northern Powerhouse, then this type of project must be pursued.
"In his speech to the Convention of the North last week, Boris Johnson made commitments to devolution and bringing back control to the North. It is disappointing that had Theresa May’s administration been more committed to the Northern Powerhouse, and acted, then all the necessary funds would have been raised for this project, and these current challenges avoided.”