Sheffield raises $11.5m for Thunderbird

Mineral sands explorer Sheffield Resources has raised $11.5 million through a share placement as it works towards completion of a pre-feasibility study at its Thunderbird project.

Sheffield will place up to 14.2 million shares at 81 cents each to sophisticated investors in a deal brokered by Hartleys.

The issue price represents a 6.9 per cent discount to the company's last closing price.

Sheffield managing director Bruce McQuitty said strong demand shown for the capital raising would bolster the company's balance sheet ahead of the delivery of a pre-feasibility study early next year.

Sheffield's directors have committed to a total of $320,000 of the placement, subject to shareholder approval.

The West Perth-based explorer will soon commence drilling at Thunderbird with the aim of expanding its existing resource.

A scoping study for the project last month put its pre-production capital cost at $294 million, including contingency allowances.

Sheffield is targeting first production at Thunderbird in 2017.

Its shares gained 5.5 cents to 92.5 cents at 1:10pm WST.