- Sheffield Resources (SFX) handballs another non-core asset to Image Resources (IMA), this time selling its McCalls mineral sands project near Gingin in WA for $12 million
- The sale follows the $24 million divestment of Sheffield’s Eneabba project to Image back in November last year
- Sheffield Chairman Bruce Griffin says the $36 million received from the sale of its non-core assets means the company can continue to fund work at its flagship Thunderbird project
- Image Managing Director and CEO Patrick Mutz says McCalls is an especially exciting opportunity given its proximity to the company’s Boonanarring project, also near Gingin
- SFX shares up 3.61 per cent to 43 cents and IMA shares steady at 29.5 cents
Sheffield Resources (SFX) has sold another non-core asset to Image Resources (IMA), this time the McCalls mineral sands project near Gingin in Western Australia for $12 million.
McCalls spans four exploration licences and includes a mineral resource estimated at 5.8 billion tonnes grading 1.4 per cent total heavy minerals (THM) for 84 million tonnes of contained THM and 75 million tonnes of contained valuable heavy minerals (VHM).
The divestment of McCalls to Image follows Sheffield’s $24 million sale of its Eneabba project to Image announced in November last year.
Sheffield Executive Chairman Bruce Griffin said today’s deal meant the company had crystallised “meaningful value” from the McCalls asset.
“Combined with the sale of the Eneabba project in late 2021, Sheffield has realised $36 million from the sale of non-core assets, ensuring we have a strong balance sheet as we finalise the financing and proceed into the execution phase for Thunderbird,” he said.
Sheffield’s flagship Thunderbird mineral sands project lies in WA’s Kimberley region and, according to the company, is one of the largest and highest-grade mineral sands deposits on the planet.
By selling off its non-core assets, Sheffield can continue funding work at Thunderbird while avoiding dilution for shareholders.
Image Managing Director and CEO Patrick Mutz said McCalls was an especially exciting opportunity given its proximity to the company’s Boonanarring project, also near Gingin.
“While the overall grade is low, this can be managed with an appropriate economy-of-scale coupled with lower-cost mining and processing methods,” he said.
“Importantly, while a number of other massive mineral sands deposits are challenged with finer grain minerals, lower-grade titanium dioxide (TiO2) minerals, and higher uranium and thorium, McCalls contains medium-grain minerals, has high-quality TiO2 and low uranium and thorium.”
SFX shares ended the day’s trading session up 3.61 per cent to 43 cents and IMA shares were steady at 29.5 cents.