Sheffield raises $32m for Thunderbird

Sheffield Resources has tapped investors for $32 million to fund ongoing development of its Thunderbird mineral sands project in WA.

Perth-based Sheffield raised $30 million through the placement of about 42.8 million shares at 70 cents each, representing a 9.3 per cent discount to its 15-day volume-weighted average price.

It has also planned to raise a further $2 million by way of a share purchase plan, priced the same as the placement, which will be fully underwritten by Bridge Street Capital Partners and Pulse Markets.

The proceeds from the raising will be used to continue development work at Thunderbird, include early construction work and procurement of long lead items.

The raising follows news last week that Sheffield had mandated finance group Taurus to arrange a $US200 million debt facility to fund Thunderbird’s development.

“This successful capital raising leaves us well capitalised to commence early works activities and well-placed to complete the optimal funding arrangements for the Thunderbird project in 2018,” Sheffield managing director Bruce McFadzean said.

“We are extremely pleased to welcome the new, major institutional investors to our share register and are buoyed by the strong continued support of our loyal existing shareholders.

“At the same time, we believe it is important to ensure that our smaller shareholders have the opportunity to participate in Sheffield at the same price as institutional investors, via the SPP, at an exciting point in Sheffield’s evolution.”

Bridge Street Capital Partners, Blue Ocean Equities and Pulse Markets acted as joint lead managers to the raising.

Shares in Sheffield were 7.3 per cent lower to 76 cents each at 10:30am.