JOHANNESBURG (miningweekly.com) – Mineral sands developer Sheffield Resources has received commitments to raise up to $17.1-million, through a placement of 23.9-million shares at 52c a share, to complete a bankable feasibility study (BFS) at its Thunderbird project, in Western Australia.
The funds raised will also be used for continued exploration in the region and for working capital purposes.
MD Bruce McFadzean said the placement was undertaken in keeping with the company’s strategy of strengthening its institutional shareholder base and increasing its profile in global financial markets as it advanced Thunderbird toward production.
The company is now fully funded beyond the conclusion of the Thunderbird BFS, which is expected to occur at the end of 2016, and to continue offtake and financing negotiations as a part of the development of the asset.
“We are very pleased with the strong support received for the placement, which will allow Sheffield to continue the momentum at its world-class Thunderbird mineral sands project. The company welcomes the addition of some of the world’s most respected investment funds as shareholders.”
“This support further underlines the quality of Thunderbird, which is a long-life asset of strategic importance to the global mineral sands industry. Thunderbird’s strategic significance is further supported by the ‘lead agency’ status award by the Western Australian government for the project.”
Bridge Street Capital Partners and Pulse Markets acted as joint capital markets advisers in relation to the placement.