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WA mineral sands project receives funding boost

WA mineral sands project receives funding boost

Dampier Peninsula

Ashurst has advised Australian company Sheffield Resources on its successful equity raising and proposed share purchase plan.

Firm: Ashurst (Sheffield Resources)

Deal: Ashurst has advised mineral sands exploration company Sheffield Resources on its successful equity raising and proposed share purchase plan.

Value: $19 million

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Area: Equity, Corporate

Key players: Ashurst’s team was led by corporate partners Roger Davies and Antonella Pacitti, with support provided by senior associate Themo Georgiou and lawyers Jacob Carmody and Toby Newnes.

Deal significance: Sheffield Resources, headquartered in Western Australia, has a global portfolio compiled of 100 per cent owned mineral sands projects.

The $16 million equity raising was done by way of a placement of fully paid ordinary shares.

Sheffield also plans to raise a further $3 million through a share purchase plan.

The issue price for shares under the placement and share purchase plan is $0.65 per share, representing a 13.3 per cent discount to Sheffield’s closing share price on the ASX as at 5 December 2018.

According to an Ashurst statement, proceeds from the company’s equity raising will be used to enable Sheffield to “formally evaluate and progress potential strategic partner interest” from a range of credible parties for development of the Thunderbird Project.

The Thunderbird Project is a major mineral sands deposit located on the Dampier Peninsula between WA’s Derby and Broome.

The equity will enable advancement of detailed engineering and design for the project, continuance of early design and scheduling works in advance of an accommodation village, access roads and other infrastructure.

It will also fund Sheffield’s corporate administration and transaction costs.

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