In a further sign the massive Thunderbird mineral sands project is a world-class deposit, Sheffield Resources is raising $32 million with significant backing from several new major institutional investors.

Commitments have been received to raise $30 million through a 42.9 million share placement at 70c per share, a 15 per cent discount yesterday’s closing price of 82c.

A Share Purchase plan will raise an extra $2 million at same 70c price.

The news didn’t excite investors however with the stock down 7 per cent to 76c in today’s trading.

Proceeds will go towards Thunderbird including start of early works construction and engineering activity, procurement of long lead items, finalising offtake and financing arrangements.

Funds will also go towards Aboriginal employee training at the project.

Bridge Street Capital Partners, Blue Ocean Equities and Pulse Markets acted as joint lead managers to the placement.

Sheffield is currently spinning out its subsidiary Carawine Resources. Subscribers under the placement will be eligible to receive Carawine shares at part of the placement.

Earlier this month, Sheffield locked away a $US200 million ($255 million) debt facility for the Thunderbird development and appointment of preferred contractor GR Engineering.