10/09/2019 - 10:14

Sheffield raises $18m

10/09/2019 - 10:14

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Sheffield Resources has raised $18 million via a share placement, in lieu of a bridging loan facility, and to progress the strategic partner process for its Thunderbird mineral sands project.

Sheffield needs $478 million to get Thunderbird into production.

Sheffield Resources has raised $18 million via a share placement, in lieu of a bridging loan facility, and to progress the strategic partner process for its Thunderbird mineral sands project.

The company issued shares at 39 cents each per share, a 20.4 per cent discount to its previous closing price.

The capital will enable the company to withdraw from a $US10 million ($14.6 million) high-interest bridging loan facility it entered into with Taurus Funds Management in June.

Sheffield will also use the funds to gain additional financial leverage as it hunts for a funding partner for its Thunderbird project.

Bridge Street Capital Partners and Blue Ocean Equities acted as joint lead managers of the placement.

Sheffield managing director Bruce McFadzean said the company was pleased with the support for the capital raising.

“This placement represents a strong endorsement of our recent bankable feasibility study update and shall provide Sheffield with a strong balance sheet as we target completion of the strategic partner and funding process for Thunderbird during 2019,” he said.

In July, Sheffield’s updated bankable feasibility study trimmed the capex of its Thunderbird mineral sands project by $101 million, to $478 million, in order to significantly reduce its equity funding requirements.

The company said the capex reduction would stem from scrapping plans for a low temperature ilmenite roaster circuit.

The equity portion of the funding will fall from $251 million to $143 million, according to Sheffield.

Last month, forrmer managing director and founding shareholder Bruce McQuitty announced he would step down from the board.

The company has already secured buyers for 100 per cent of the zircon and ilmenite produced in stage one.

Shares in Sheffield were down 18.4 per cent to trade at 40 cents each at 11.35am AEST.

 

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