Sheffield Resources Limited, a rapidly emerging mineral sands company, has announced on Friday that it has decided to raise up to $11.5 million in a share placement to advance its Thunderbird heavy mineral sands deposit project in Western Australia.
According to the ASX and media release by Sheffield Resources, the company will place up to 14.2 million shares at an issue price of 81 cents per share to sophisticated and professional investors to raise the necessary funds.
The Placement follows the release on 14 April 2014 of the Thunderbird Scoping Study results which underlined the project’s large scale, long life and exceptional financial returns.
The funds raised will be used to fund drilling to target extensions of high grade mineralisation at Thunderbird; resource update and scoping study optimisation work and pre-feasibility studies at the site; regional exploration at the Dampier Mineral Sands project; drilling Red Bull Nickel (Fraser Range) and Mt Vettel Iron Ore (Pilbara); and for general working capital purposes.
“We are very pleased with the strong demand shown for the capital raising. It ensures Sheffield will have a robust balance sheet to deliver on significant upcoming milestones. The Company will soon commence drilling to target extensions of high grade mineralisation at Thunderbird, with the aim of expanding the existing resource and enhancing the already outstanding project economics,” said Sheffield’s Managing Director Bruce McQuitty.
“We look forward to delivering the Thunderbird Pre-feasibility Study in Q1 2015, followed by the Definitive Feasibility Study for our target of initial production in 2017. Thunderbird is a world class mineral sands project that continues to deliver on the upside. The second half of 2014 will be another very exciting period for Sheffield.”
The company’s directors have collectively committed to contribute $320,000 in the Placement, subject to shareholder approval.