Sheffield taps Taurus for Thunderbird debt funding

PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has mandated Taurus Mining Finance Fund to arrange for a $200-million debt facility to support the development of the Thunderbird project, in Western Australia.

The ASX-listed company said on Wednesday that Taurus had agreed to arrange and underwrite a $200-million project development facility, comprising a $175-million term loan facility and a $25-million contingent instrument facility.

Additionally, a $10-million unsecured equity bridge loan facility is also available to advance project development activities.

Sheffield MD Bruce McFadzean noted that the company has received significant interest and responses from a variety of banks and debt investors over the last few months.

“Taurus shares our positive outlook on the mineral sands industry and has a strong understanding of the sector having managed successful mineral sands investments in the past.”

He added that the funding facility provides Sheffield with $200-million in underwritten funding, without equity dilution, with a reasonable cost structure and a seven-year tenor.

“Undoubtedly this commitment represents a strong and positive endorsement of the Thunderbird project’s outstanding financial metrics as one of the largest new, long life mineral sands projects in the world. Sheffield is now strongly positioned to advance Thunderbird towards development,” McFadzean said.

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.