PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has secured a $110-million project finance facility to fund its Thunderbird mineral sands project, in Western Australia.
The ASX-listed company on Monday announced that Orion Resource Partners and Kimberley Mineral Sands (KMS) had agreed upon a non-binding term sheet for a production-linked loan facility for the Thunderbird mineral sands project.
Alongside the A$160-million Northern Australian Infrastructure Fund loan facility secured at the end of July, KMS is expected to achieve financial close in the coming months following completion of the proposed loan facility with Orion.
Sheffield said on Monday that completion of the loan facility remains conditional upon completion of due diligence, the parties entering into binding legal documentation and satisfaction of conditions precedent for the loan facility.
“Sheffield is extremely pleased with the support shown by Orion as a cornerstone finance partner. In partnership with our joint venture partner Yansteel, we look forward to satisfying the conditions required to utilise these facilities, reaching financial close, making a final investment decision, completing the construction phase and moving into production,” Sheffield executive chairperson Bruce Griffin said.
Meanwhile, Sheffield said that the cost for the Thunderbird project is expected to remain unchanged from those in the March updated bankable feasibility study, which placed project capital costs at A$361-million. Sheffield has cash reserves of A$40-million which is expected to fund its A$36-million equity contribution to the project development.