- Sheffield Resources has received commitments to raise a total of $18 million through the issue of 46.2 million fully paid ordinary shares
- The placement was strongly supported by Sheffield’s existing shareholder base with a proposed price of $0.39 per share
- The funds raised will allow the company to withdraw from a US$10 million bridging loan facility and help acquire a strategic partner and funding for their flagship Thunderbird Mineral Sands project
Sheffield Resources has received commitments to raise a total of $18 million through the issue of 46.2 million fully paid ordinary shares.
With a proposed issue price of $0.39 per share, the placement was strongly supported by Sheffield’s existing shareholder base. Following its success, company directors have subscribed for an aggregate $93,000, issued upon shareholder approval.
The funds raised will allow the mineral sands explorer to withdraw from a US$10 million bridging loan facility, help acquire a strategic partner and funding for their flagship Thunderbird Mineral Sands project.
The northern WA operation is poised to commence production of mineral sands products (such as premium zircon and primary ilmenite) by 2021.
Sheffield Resources subjected the Thunderbird project to a banking feasibility study (BFS) in early 2017, which indicated the area is one of the world’s largest and highest grade, zircon and ilmenite-rich mineral sands ore reserves.
The placement is expected to be completed in two tranches, with 26.5 million shares offered in the first tranche at $0.39 cents. The company aims to raise approximately $10.4 million during this stage using Sheffield’s existing placement capacity.
The second tranche will result in the issue of roughly 19.6 million shares to raise an additional $7.6 million in equity. It’s expected to take place following shareholder approval at a general meeting scheduled in October.
Bridge Street Capital Partners and Blue Ocean Equities will work as joint lead managers for the placement, with Bridge Street Capital also acting as bookrunner.
Sheffield Managing Director Bruce McFadzean said the company was pleased with the support received during the placement.
“This placement represents a strong endorsement of our recent BFS update and shall provide Sheffield with a strong balance sheet as we target completion of the strategic partner and funding process for the Thunderbird Mineral Sands project during 2019,” he explained.
“Thunderbird is one of the largest and highest grade, zircon rich undeveloped mineral sands assets globally. We are construction ready and look forward to delivering this world-class project into construction upon completion of the funding process.”
Shares in Sheffield Resources were down 10.4 per cent today, currently up for grabs for $0.43.