Sheffield raises A$32m for Thunderbird development

PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources will raise A$32-million through a share placement and share purchase plan (SPP) to fund the development of its Thunderbird project, in Western Australia.

The company on Wednesday said that it would raise an initial A$30-million through the placement of more than 42.8-million shares, at a price of 70c each. The share placement would be conducted under Sheffield’s placement capacity, and would not require shareholder approval.

A further A$2-million would be raised through an SPP to existing shareholders. Shareholders would be allowed to subscribe for a maximum of A$15 000 worth of new shares, priced at 70c each.

“This successful capital raising is a landmark event in Sheffield’s evolution as we advance the world-class Thunderbird mineral sands project towards production,” said MD Bruce McFadzean.

“It leaves us well capitalised to commence early works activities and well-placed to complete the optimal funding arrangements for the Thunderbird project in 2018.”

The Thunderbird Stage 1 development is expected to have an 8.5-million-tonne-a-year throughput, doubling to 17-million tonnes a year in the fifth year of operations, with the investment of a further A$195-million.

Over its 42-year mine life, Thunderbird is expected to deliver some 76 100 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titano-magnetite.