Sheffield injects A$6.5m into Thunderbird as refinancing talks with lenders continue
ASX-listed Sheffield Resources has agreed to provide additional funding to the Thunderbird mineral sands operation in Western Australia, as joint venture (JV) company Kimberley Mineral Sands (KMS) continues negotiations with its senior lenders over a potential debt restructure.
Sheffield said on Wednesday that subdued mineral sands market conditions had contributed to ongoing working capital pressures at KMS, which owns the Thunderbird mineral sands mine. The company and its JV partner Yansteel are both guarantors to KMS’s senior secured loan facilities with Orion Resource Partners and the Northern Australia Infrastructure Facility.
The next repayment under those facilities is due on December 31, 2025, with KMS in discussions with Orion and NAIF over possible restructuring options and a deferral of the scheduled payment.
To support near-term liquidity, Sheffield and Yansteel will contribute a combined A$6.5-million to KMS before the end of November. Sheffield said it would fund its portion from existing cash reserves. The company added that further shareholder contributions may be required, and that it may choose whether or not to participate in any additional funding rounds under the KMS shareholders’ agreement.
Sheffield cautioned that, while collaborative discussions with lenders were ongoing, “there is no guarantee that a successful outcome will be concluded, or that KMS will receive the funds necessary from shareholders to meet its working capital requirements”.
The company said it would continue updating the market on material developments related to KMS and the Thunderbird project.
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