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VRX Silica in trading halt ahead of capital raising announcement

The halt will remain in place until the start of trading on Tuesday, April 2, or when an announcement is released.
Silica sand pouring through hands
The company has three advanced silica sand projects north of Perth

VRX Silica Ltd (ASX:VRX) has a material announcement about a proposed capital raising pending and has been granted a trading halt by the ASX.

The halt will remain in place until the start of trading on Tuesday, April 2, 2019, or when the announcement is released to the market, whichever occurs earliest.

VRX Silica, which has silica sand projects in Western Australia, last traded at 7 cents on Thursday.

READ: VRX Silica fields cost estimate for processing plant at silica sand projects

This week the company received an independent process design, engineering and cost estimate for a processing plant at its three projects – Arrowsmith North, Arrowsmith Central and Muchea - north of Perth.

Processing test-work, process circuit design and engineering has been undertaken by CDE Global, a leader in the construction of sand mining wet processing plants.

$18 million estimate

CDE Global provided an $18 million estimate for a 2 million tonnes per annum processing plant, which due to its modular nature, is a detailed proposal and accurate to plus 15% in pricing.

VRX Silica estimates costs for the plant feeder, water supply and contingency will increase the total capital cost for a processing plant to about $25 million.

Further test work is also underway to finalise the requirements for the magnetic separation component (WHIMS).

The processing plant is designed to wash, screen and attrition sand as well as remove heavy minerals to create a final product for delivery to customers.

READ: VRX Silica drilling aims to increase and upgrade silica sand resources

Drilling is also underway at the projects with the aim of increasing and upgrading resources while the company intends to finalise bankable feasibility studies in the September 2019 quarter.

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VRX Silica Ltd Timeline

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