Ventnor Resources Ltd (ASX:VRX) has a new substantial shareholder with Perth-based Australian Silica Pty Ltd now holding a 17.83% stake in the silica sand focused company.
Australian Silica has received a total of 65 million shares in two transactions in relation to Ventnor's acquisition of the Muchea Silica Sand Project 50 kilometres north of Perth.
READ: Ventnor Resources acquires silica sand project near Perth
This project will complement the 350 square kilometres held at the Arrowsmith Silica Sand Project, located further to the north.
Ventnor is a leading ASX gainer with shares up more than 36% to an intra-day high of 13.5 cents, which is also a new 12-month high.
Exploration targets
Two separate conceptual exploration targets have been estimated for two areas within the Muchea project.
A 70 to 125 million tonne silica sand target grading 98% to 99.5% silica was estimated after 38 aircore holes were drilled.
Drilling of 40 auger holes and 10 aircore holes also produced a 100 to 150 million tonne silica sand target grading 98% to 99.5% silica in another area.
The potentially high-grade, high-tonnage silica sand project is near highway and rail connecting to Kwinana port for bulk handling.
Ventnor originally secured an option to acquire the project in March 2018 and in July entered into a new agreement to immediately acquire 100%.
Prior to entering into the acquisition agreement, Ventnor acquired Wisecat, the company acquiring the Muchea project, in consideration for 8.33 million shares.
65 million shares issued
A batch of 10 million shares at a deemed price of 6 cents were also issued to the vendor, Australian Silica.
A further 55 million shares at a deemed price of 6 cents and 20 million options exercisable at 10 cents expiring June 30, 2021, were then issued to the vendor after shareholder approval was obtained at a meeting this month.
Ventnor has identified attractive supply-demand market forces for sand used in glass, concrete and tech metal.
Test work to date suggests that both the Muchea and Arrowsmith projects are highly prospective and of potentially significant scale and grade.
READ: Ventnor Resources bulk sample testing confirms glass-making quality sand
The company has recently received positive silica sand bulk sampling test results from the Arrowsmith and Muchea projects.
Samples were taken from Muchea, Arrowsmith North, Arrowsmith Central and Arrowsmith South.
The results have confirmed that the projects can produce the sought-after product for glassmaking.
Results from this work will also support an upcoming JORC-compliant resource estimate for Arrowsmith North deposit.