- Sheffield Resources (SFX) completes the financing requirements for its Thunderbird mineral sands project in Western Australia
- The company secured a US$110 million (A$170.6 million) production linked facility with the Orion Mineral Royalty Fund which follows a $160 million debt financing package
- Additionally, Sheffield awarded a long-term contract to Piacentini & Son to supply and operate a mining unit plant for Thunderbird
- Currently, construction activities at the project are over 40 per cent complete and first production is scheduled for Q1 2024
- Company shares are up 12.5 per cent and trading at 45 cents at 2:57 pm AEDT
Sheffield Resources (SFX) has announced two new updates regarding its Thunderbird mineral sands project in the Kimberley region of Western Australia.
Loan facility
Sheffield’s joint venture company Kimberley Mineral Sands (KMS) signed a binding agreement with OMRF LLC, a related entity of the Orion Mineral Royalty Fund, for a US$110 million (A$170.6 million) production linked facility.
This funding support from Orion follows the $160 million debt financing package from the Northern Australia Infrastructure Facility (NAIF).
Significantly for the company, the production linked facility completes the financing requirements for the Thunderbird project and KMS will now work towards financial close.
“We’re delighted to have Orion supporting Thunderbird through this significant financing package and we look forward to achieving financial close of the NAIF and Orion loan facilities in early Q4 and achieving a final investment decision for Thunderbird,” Sheffield Executive Chair Bruce Griffin said.
Contract award
Sheffield has awarded a nine-year mining services contract to Piacentini & Son to supply and operate a mining unit plant for the Thunderbird project.
The mineral sands contractor will also supply and operate a mining fleet to excavate and deliver ore to the mining unit plant before delivering processed materials to the wet concentrator plant.
Mr Griffin said this contract award is one of the final remaining commercial steps to completing the project financing arrangements for Thunderbird.
“We look forward to Kimberley Mineral Sands and Piacentini establishing a long and successful partnership as we bring the world class Thunderbird mineral sands project into production in the near future,” he said.
Sheffield said that construction activities at Thunderbird are over 40 per cent complete and it expects to begin production in the first quarter of 2024.
Company shares were up 12.5 per cent and trading at 45 cents at 2:57 pm AEDT.