VRX directors have committed to subscribe for an aggregate of 4,333,333 shares under the placement, representing about $260,000, subject to shareholder approval.
Funds raised under the placement will be allocated to completion of feasibility studies and progression of environmental approvals and mining lease applications at VRX’s Arrowsmith and Muchea silica sand projects in Western Australia.
Managing Director Bruce Maluish said: “We are delighted with the strong support received for the placement from a wide range of investors.
“The placement positions VRX to continue to rapidly progress both the Arrowsmith and Muchea Silica Sand Projects.
“Near term activity includes an updated JORC Resource following the completion of our recent drilling program and the release of a bankable feasibility study, currently targeted to be completed in the early part of the September quarter 2019.”
A portion of the net placement proceeds will be directed towards exploration activities at VRX’s Boyatup Silica Sand Project and Warrawanda High Purity Quartz Project.
The company recently started drilling at the North Arrowsmith, Central Arrowsmith and Muchea silica sands projects in Western Australia with the aim of increasing and upgrading resources.
Aircore drilling at the Arrowsmith projects will follow-up initial shallow hand auger drilling and will be closer spaced and deeper than the initial work.
This work is aimed at increasing the tonnage of silica sand and JORC confidence within the mining lease areas.
Assays are expected to be available for new resource estimations within 3-4 weeks after completion of drilling.