Sheffield raises cash for Thunderbird

Mineral sands explorer Sheffield Resources has raised $5 million for its Thunderbird project, and plans to bring in an additional $2 million via a share purchase plan.

Sheffield has placed 11.4 million shares at 44 cents each to sophisticated and professional investors to raise $5 million, and has invited eligible shareholders to participate in a share purchase plan at the same price as the placement to raise the extra $2 million.

Sheffield directors have collectively contributed $167,640 to the placement.

Funds raised will be used to undertake a bankable feasibility study at Sheffield’s $394 million Thunderbird mineral sands project near Derby, as well as advancing offtake and financing negotiations.

It will also use the funds for regional exploration at its Dampier mineral sands project and its Red Bull nickel project in the Fraser Range.

Recently appointed managing director Bruce McFadzean said the raising ensured Sheffield would have a strong balance sheet to deliver on upcoming milestones on the way to finalising the bankable feasibility study on Thunderbird late next year.

“This exciting phase has commenced and will include a number of catalysts including permitting, grant of the mining lease, a maiden reserve for the Thunderbird deposit and key offtake and financing negotiations,” Mr McFadzean said.

“Thunderbird is a long life, high margin, zircon-rich asset of strategic importance in the global mineral sands industry and of state significance in WA.”

Hartleys brokered the offer.

Shares in Sheffield were 2.1 per cent lower to 45 cents each at 11am.