VRX Silica Ltd (ASX:VRX) directors have demonstrated their confidence in the company’s silica sands strategy through participation in a share placement which raised about $2.26 million.
Participation by the directors was approved by shareholders at a general meeting on May 30, 2019.
Non-executive director Peter Pawlowitsch acquired 3,333,333 shares at 6 cents each and now holds more than 24.841 million shares.
READ: VRX Silica has top shelf resources and infrastructure: Hartleys
Managing director Bruce Maluish acquired 500,000 shares in the placement and now holds in excess of 11.81 million.
The company’s non-executive chairman Paul Boyatzis acquired 498,750 shares and now holds 3.48 million.
READ: VRX Silica attracts $2.26 million to advance silica sand projects
Funds raised under the placement to professional and sophisticated investors will be allocated to completion of feasibility studies and progression of environmental approvals and mining lease applications at the Arrowsmith and Muchea silica sand projects in WA.
Of the placement, 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, targeted to be completed in the early part of the September quarter 2019.”
READ: VRX Silica achieves high recoveries from its silica sand process plant design
The company’s test work recently confirmed high recoveries of commercial silica sand products from the projects.
Three iterations of test work have taken place, with the final iteration completed in March 2019 by CDE Global, a test work laboratory and process plant fabricator based in Northern Ireland.
VRX has since completed confirmation assays on final products from that test work through Nagrom Laboratories in Perth, WA.
A process circuit design, engineering and cost estimate has been prepared by CDE Global for a plant which was based on this test work and the final determination of recoveries is based on this circuit design.