OFFICIALS are celebrating news of two grants awarded to a North Yorkshire theatre.

The restoration of Richmond's Georgian Theatre Royal was expected to cost £1.1m, until problems during construction of an extension increased the bill by £400,000.

Some of the additional money has been raised locally but, yesterday, trustees confirmed two large awards have been made.

A £130,000 grant has been awarded by the European Regional Development Fund. The money will be invested in the final phase of the restoration.

Another £100,000 from the Foundation for Sport and The Arts will go towards a new studio, which will be used as a workshop for young people interested in theatre, either as a hobby or as a career.

The news means the theatre can also begin to forge stronger links with the local education authority, and Richmond School in particular, now it has been awarded special status in the performing arts.

The European Development Fund has also offered another £55,000 over the next three years to invest in restructured staff arrangements at the theatre.

Chairman of the Georgian Theatre Royal Trustees, Lady Crathorne, said everyone associated with the project would be delighted to hear the news.

She said: "The last few years, in particular, have been a huge challenge, but we are now seeing the tremendous results of the efforts of a very committed team of volunteers and professionals.

"The continuing support of the town, district and county councils has also been greatly appreciated."

Theatre manager Vaughn Curtis said: "With the completion of stage one, we can now put our energy into making the best possible use of our theatre, and promote it as widely as possible to tourists, audiences and local businesses."

Campaign co-ordinator Mac Bryant described news of the grants as the icing on the cake of wonderful year.

He said: "We are extremely grateful to everyone who has kept faith in the project.

"The Georgian Theatre Royal has a fascinating history, and is now poised at the beginning of a new phase of development.

"Its future contribution to the life of the area cannot be overstated."

Published: 16/12/2003