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VRX Silica raises $4 million to accelerate WA silica sand projects

Snapshot

The placement was strongly supported by existing shareholders and new sophisticated and institutional investors.

VRX Silica Ltd - VRX Silica raises $4 million to accelerate WA silica sand projects

Quick facts: VRX Silica Ltd

Price: 0.083 AUD

ASX:VRX
Market: ASX
Market Cap: $36.94 m
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VRX Silica Ltd (ASX:VRX) will use $4 million raised in a strongly supported placement to accelerate the development of its three silica sand projects north of Perth in Western Australia.

The placement at 11.5 cents per share was supported by a range of sophisticated and institutional investors, including existing shareholders and new investors.

This will result in the issue of more than 34.78 million new fully paid ordinary shares.

One for two option

Participants will also be issued one option for every two shares subscribed for in the placement exercisable at 18 cents and expiring 18 months from their date of issue.

VRX’s managing director Bruce Maluish said, “We are delighted with the strong demand shown by both new and existing shareholders in this placement, including a number of institutional investors.”

The strengthened balance sheet allows VRX to accelerate the advancement of the Arrowsmith North, Arrowsmith Central and Muchea silica sand projects.

Development plans

This will include permitting and approvals, long lead capital items, detailed engineering work, hydro and resource drilling.

Proceeds after costs will also support working capital purposes.

VRX has recently completed a bankable feasibility study (BFS) for the world-class Muchea project, about 50 kilometres north of Perth.

BFS results

This BFS for the project which has high-purity silica sand in-site, demonstrated “outstanding” financial metrics.

The company has completed a BFS for each of the two Arrowsmith projects, around 270 kilometres north of Perth, both of which showed “exceptional” financial metrics.

Maluish said, “The recent BFSs for our Arrowsmith North, Arrowsmith Central and Muchea silica sand projects demonstrate the world-class potential of our projects and the funds raised will allow us to rapidly advance their development.”

The placement falls within the company’s current placement capacity under Listing Rule 7.1 and is scheduled to settle on Tuesday, November 12, 2019.

Hartleys Limited acted as lead manager to the placement.

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Full interview: VRX Silica unveils BFS and maiden probable ore reserve at...

VRX Silica Ltd (ASX:VRX) managing director Bruce Maluish updates Proactive on the Bankable Feasibility Study (BFS) and maiden probable ore reserve at its Muchea Silica Sand Project in Western Australia. This is the third BFS for VRX’s three advanced silica sand projects north of Perth and...

on 23/10/19

2 min read