THE BOURSE WHISPERER: Sheffield Resources (ASX:SFX) has received commitments to raise up to a total of $17.1 million, which will be put towards the completion of a Bankable Feasibility Study (BFS) at the company’s Thunderbird mineral sands project near Derby in Western Australia.
The total of $17.1 million (before costs) is being raised through a placement of 32.9 million fully paid ordinary shares at an issue price of 52 cents per share.
Sheffield said the placement welcomes a number of new domestic and international institutional and cornerstone investors to the company register in addition to other professional and sophisticated investors.
As well as enabling the completion the BFS, the funds will also be put towards continued exploration in the region surrounding the Thunderbird project while a small portion of the funds will be reserved for general working capital purposes.
“We are very pleased with the strong support received for the Placement, which will allow Sheffield to continue the momentum at its world class Thunderbird mineral sands project,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.
“The company welcomes the addition of some of the world’s most respected investment funds as shareholders.
“This support further underlines the quality of Thunderbird, which is a long life asset of strategic importance to the global mineral sands industry.
“Thunderbird’s strategic significance is further supported by the ‘Lead Agency’ status award by the Western Australian Government for the project.
“Whilst always recognising the wonderful support from our current shareholder base, it is important that we now have greater institutional investor representation, enabling Sheffield to go to the next level and assist in unlocking further value for all shareholders.
“The company is now fully funded beyond the conclusion of the Thunderbird BFS, which is expected to occur at the end of 2016 and to continue offtake and financing negotiations as a part of the development of this tier 1 mineral sands asset.”