Sheffield Resources Ltd. said Sept. 10 that it received commitments from investors to raise A$18.0 million by issuing 46.2 million shares at 39 Australian cents each.
The company intends to use the proceeds to withdraw from the US$10 million bridging loan facility and progress the strategic partner process for the Thunderbird mineral sands project in Western Australia.
The placement is in two tranches, with the first worth about A$10.4 million and the second requiring shareholder approval at a meeting scheduled for mid-October.
Sheffield mandated Bridge Street Capital Partners and Blue Ocean Equities as joint lead managers of the placement, with the former also acting as bookrunner.
Sheffield is targeting initial production at Thunderbird in 2021, which is when the company expects a zircon supply deficit to emerge.
In August, the company said it secured a binding off-take deal for zircon from the project, accounting for about 8% of the total stage-one estimated output at Thunderbird.
