24/08/2016 - 10:23

Sheffield raises $17m for mineral sands project

24/08/2016 - 10:23

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Perth-based Sheffield Resources has tapped investors for a $17.1 million capital raising to fund completion of a bankable feasibility study on its $271 million Thunderbird mineral sands project near Derby.

Sheffield raises $17m for mineral sands project
Sheffield Resources managing director Bruce McFadzean.

Perth-based Sheffield Resources has tapped investors for a $17.1 million capital raising to fund completion of a bankable feasibility study on its $271 million Thunderbird mineral sands project near Derby.

The aspiring miner said it had received firm commitments for the placement of 32.9 million shares at 52 cents each to raise the funds, representing a 17 per cent discount to the company’s 30-day volume-weighted average price.

Managing director Bruce McFadzean said the company was now fully funded beyond the bankable feasibility study, expected to be complete by year’s end, and to continue offtake and financing negotiations.

“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,” he said.

“This support further underlines the quality of Thunderbird, which is a long life asset of strategic importance to the global mineral sands industry.

“Whilst always recognising the wonderful support from our current shareholder base, it is important that we now have greater institutional investor representation, enabling Sheffield to go to the next level and assist in unlocking further value for all shareholders.”

Engineering group Hatch was appointed to undertake the BFS on Thunderbird in March.

Bridge Street Capital Partners and Pulse Markets acted as joint capital markets advisers to the raising.

Sheffield shares were 19.4 per cent lower to 60 cents each at 10:20am.

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