The Sheffield Resources Ltd (ASX: SFX) share price is soaring on the back of a late market release. The mineral exploration company announced that it has completed the joint venture agreement with YGH Australia Investment Pty Ltd (Yansteel).
For most of the day, the company's shares were trading relatively flat. However, upon the news breaking on the ASX, the Sheffield share price accelerated to 42.5 cents.
At the time of writing, Sheffield shares have retreated back to 41 cents, up 13.89% with only moments of trading left for the week.
What's driving the Sheffield share price higher?
The Sheffield share price is racing higher as investors look ahead to the company's attractive prospect.
In its announcement, Sheffield advised that it's finalised the transaction with Yansteel under the Share Subscription Agreement and Shareholders Agreement. With securing approval from the project's lenders, and Yansteel's $130.1 million investment, Kimberley Mineral Sands Pty Ltd is now jointly-owned.
The strategic partners will focus on completing a final bankable feasibility study for the Thunderbird project. 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 according to plan, the final investment decision will occur sometime later this year.
Kimberley Mineral Sands is working with Taurus Funds Management and the Northern Australia Infrastructure Facility in regards to the project financing.
Board restructure
As a result of the ongoing developments, Sheffield has appointed experienced mechanical engineer Mr Gordon Cowe as an independent non-executive director. Mr Cowe has over 30 years of knowledge in leading and managing resources construction projects. He has worked with leading contractors such as Bechtel and Worley Parsons, on a number of projects.
While the board acquires Mr Cowe's services, joint venture founding directors Mr Will Burbury and Mr David Archer have resigned. The expected outcome has enabled management to now focus on positioning the company to progress its Thunderbird project.
Words from the managing director
Sheffield managing director Bruce McFadzean hailed the milestone achievement, saying:
Our partnership with Yansteel is a great moment for Thunderbird, the people of the Kimberley, and for Sheffield Resources' investors and stakeholders. We welcome our newly formed partnership with Sheffield and very much look forward to developing the Thunderbird Mineral Sands Project which will provide benefits for all stakeholders.
On behalf of the Board, I extend a warm welcome to Gordon, whose skills complement the next phase of Sheffield's growth through the development of the Thunderbird Mineral Sands Project. At the same time, I sincerely thank Will and Dave for their achievements in discovering and establishing Thunderbird as a world class project.
The Sheffield share price has gained more than 350% over the past 12 months, but only around 6% year to date.
