RSM Australia brings together Sheffield Resources and Yansteel in joint venture

RSM Australia brings together Sheffield Resources and Yansteel in a transformational joint venture for the Thunderbird Mineral Sands Project.

RSM is pleased to have advised Sheffield Resources Limited (ASX: SFX) in connection with its $12.9m share placement to Yansteel and the execution of an offtake agreement and non-binding term sheet to invest $130.1m for a 50% joint venture interest in the Thunderbird Mineral Sands Project, which was announced to the market on 11 August 2020.

The RSM team, led by Xiaowen Shi from the China Practice Group and Justin Audcent from Corporate Finance, introduced Yansteel as a strategic partner and advised Sheffield on the transaction, whilst RSM’s Tax Consulting team, led by Con Paoliello, provided tax advice on the investment structure.

Xiaowen Shi said, “With Sheffield Resources having already secured project finance from NAIF and Taurus, we were able to leverage our extensive networks to identify and introduce a strong, strategically-aligned equity investment partner for the Thunderbird Project and facilitate discussions and negotiations between the parties through to execution of the term sheet.”

Bruce McFadzean, managing director of Sheffield Resources, said, “We would like to thank Xiaowen and the whole RSM team for their invaluable support and input into this transformational transaction with Yansteel."

"Xiaowen has introduced an ideal strategic partner to Sheffield who share similar values and desires to build and operate a project that will add significant benefits to the local community and Australia in general."

"This successful outcome is the beginning of a longer term relationship with RSM and their team, and we look forward to concluding the transaction upon a successful FIRB application over the coming months”.

RSM’s China Practice Group focuses on sourcing and facilitating Chinese investment into resources and other assets, facilitating mutually beneficial commercial and trading relationships, and supporting Chinese businesses in Australia.

Our Corporate Finance and Tax Consulting teams regularly advise on corporate mergers and acqusitions, inbound investment, private equity and capital raising transactions.

For more information regarding the ASX announcement, please click here.

How can RSM help?

If you are seeking to raise capital or require advice on a merger, acquisition, joint venture or other transaction, contact your local RSM office today and meet with one of our specialists.