The Sheffield Resources Ltd (ASX: SFX) share price climbed higher today following the execution of binding definitive documents with YGH Australia Investment Pty Ltd (Yansteel).
At the closing bell, the Sheffield share price finished the day up 4.1% to 38 cents. Heading the other way, the S&P/ASX 200 Materials Index (ASX: XMJ) ended down 1% to 16,156 points.
What did Sheffield announce?
According to its release, Sheffield and its potential joint venture partner, Yansteel executed binding definitive documents to become equal strategic partners on the Thunderbird Mineral Sands project.
Sheffield advised that both parties are working towards fulfilling the remaining conditions set out. Once finalised, a lender agreement and a $130.1 million payment from Yansteel will follow in the coming weeks.
At completion of the joint venture, a final bankable feasibility study will be undertaken. The report will assess an in-depth review of project potential in terms of minable resources and revenue that can be generated.
Should all go to plan, project financing arrangements and a final investment decision will be made sometime this year.
What did the managing director say?
Commenting on the deal, Sheffield managing director Bruce McFadzean said:
This is another exciting step forward for Thunderbird, our partnership with Yansteel, and for Sheffield Resources' investors and stakeholders.
In Yansteel we have a partner that is equally committed to the project and we are both looking forward to a long and productive relationship. What is particularly pleasing is that both parties are committed to creating hundreds of jobs in the Kimberley, for decades to come.
Sheffield share price snapshot
The Sheffield share price has lifted more than 480% higher from its all-time low of 6.5 cents reached in March last year.
The company's shares hit a 52-week high of 48 cents in December following Foreign Investment Review Board (FIRB) approval.
Based on current share price levels, the company commands a market capitalisation of around $131 million.
