Sheffield Resources Limited (ASX: SFX) has provided an update regarding its discussions with lenders concerning the Kimberley Mineral Sands (KMS) owned Thunderbird Mineral Sands Mine in Western Australia. Sheffield Resources is focused on assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth; its core asset is a 50% investment in KMS. The update refers to previous announcements about debt restructure negotiations with KMS’s primary lenders, Orion Resource Partners and the Northern Australia Infrastructure Facility (NAIF).
Sheng Feng (Hong Kong) Co. Ltd, a related party of Yansteel, acquired the Production Linked Loan Note Facility from Orion on January 28, 2026. KMS, Sheng Feng, and NAIF have agreed to a further waiver and deferral arrangement relating to the December 2025 and March 2026 interest and principal repayment obligations, as well as various covenant waivers associated with the senior secured facilities. Discussions regarding a resculpting of the KMS debt obligations with Sheng Feng and NAIF are ongoing, but there is no guarantee that amendments to the senior secured loan facilities will be successfully completed.
The company stated that a previously announced DMU outage, reduced dozer fleet availability, lower mine contractor productivity, and seasonal weather impacts have adversely affected KMS’s operating cashflows. As a result, KMS required further working capital support, which it received from Yansteel in the form of US$3.1m prepayment for ilmenite. However, the company cautions that there is no certainty KMS will continue to receive the necessary funds from shareholders to meet its future working capital requirements.
Sheffield Resources will continue to keep the market informed of material developments concerning the business operations of KMS and the Thunderbird Mineral Sands Mine. This announcement has been authorised for release by the Company’s Board of Directors.
