Sheffield Resources (SFX.AX) has announced the Northern Australia Infrastructure Facility has made an investment decision to support the Thunderbird Mineral Sands project in Western Australia. The NAIF is offering financial assistance of up to A$160M which would already cover about half of the anticipated A$300-320M in financing needs to get the project under way.
Sheffield owns 50% of the project with Yansteel owning the balance, and Sheffield’s attributable NPV would be approximately A$650M based on the A$1.3B total project NPV as presented in the March 2022 bankable feasibility study.
The Thunderbird project is one of the higher grade mineral sands projects around and the anticipated mine life is currently almost 40 years. As it currently stands, Sheffield Resources and Yansteel are hoping to produce the first zircon and ilmenite in ‘early 2024’ which seems to indicate it expects to close the additional financing requirements soon.
Disclosure: The author has no position in Sheffield Resources. Please read our disclaimer.
