Shares in Sheffield Resources have tumbled after the aspiring mineral sands miner raised $18 million in a placement at a discounted 39c.

The cash raised will allow the Bruce McFadzean-led company to withdraw from an 18-month, high-interest, US$10 million ($14.59 million) bridging loan facility it entered into with Taurus Funds Management in June and provides breathing room for it to pursue a funding partner for its flagship Thunderbird project in the Kimberley.

The raising will be supported by Sheffield directors who will subscribe for a combined $93,000 worth of new shares.

Sheffield is exploring options for a project equity partner that could help fill a $260 million equity gap that still exists for its $478 million Thunderbird project.

The company has already secured buyers for 100 per cent of the zircon and ilmenite produced by stage one of Thunderbird, which lies between Broome and Derby.

Bridge Street Capital Partners and Blue Ocean Equities are acting as joint lead managers of the placement.

Image: Sheffield Resources Managing Director Bruce McFadzean, The West Australian.