The Sheffield Resources Ltd (ASX: SFX) share price whizzed higher today, hitting a 52-week high of 48 cents in mid-afternoon trade before retreating. This comes after the Foreign Investment Review Board (FIRB) gave the nod for an investment by its proposed joint venture partner, YGH Australia Investment Pty Ltd.
At close of trade today, the Sheffield share price was swapping hands for 39 cents, up 21.87%.
What's driving the Sheffield share price up today?
In today's release, Sheffield advised that FIRB has cleared the pathway for Yansteel to invest $130.1 million in a 50% stake of the Thunderbird Mineral Sands project. The favourable outcome will see Sheffield and Yansteel become equal strategic partners.
Both parties will finalise their joint venture agreements in coming weeks. They will also conduct a feasibility study to assess the project potential, with a final investment decision expected next year.
More on the Thunderbird joint venture
The Thunderbird project is considered a high-quality site, located in the north-west Western Australian region. A bankable feasibility study in March 2017 found the area contained one of the largest – and highest-grade – mineral sands discovered in the last 30 years.
Should the project fulfil its potential, the 42-year mine life is estimated to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.1 billion.
What did management say?
Sheffield managing director Bruce McFadzean welcomed the result, saying:
The advice from FIRB is a positive step forward for Yansteel, Sheffield and the development of the Thunderbird Mineral Sands Project. It is a significant event for shareholders and the Kimberley community, demonstrating state and federal governments' support for continued investment in the local resources sector.
Sheffield share price summary
The Sheffield share price reached a 52-week high of 48 cents today. While its shares dipped during the COVID-19 global crisis, the Sheffield share price has rebounded strongly since July.
