VRX raises $7 million as silica development accelerates
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Special Report: VRX Silica has strengthened its balance sheet, raising $7 million before costs via a placement to institutional, professional and sophisticated investors.
Managing director Bruce Maluish said the company was pleased to have secured the funds.
“We are delighted with the strong support received for the capital raising from a wide range of investors, with bids received well in excess of the amount raised,” he said.
“This placement positions VRX to rapidly advance the development of our silica sands projects, in particular at Arrowsmith North for grade control drilling for the first 10 years of production, confirmatory test work, drilling and equipping water bores, port access design, construction of access roads and final engineering.”
The VRX Silica raising will be carried out at 18c per share – a 23.4% discount to the last closing price of VRX shares on the ASX and a 13.6% discount to the 10-day volume-weighted average price of 20.8c per share.
A total of 38.9 million new shares will be issued, with the new shares to rank equally with existing VRX fully paid ordinary shares on issue.
The placement is scheduled to settle on November 27.
VRX’s Arrowsmith North and Arrowsmith Central silica sand projects sit 270km north of Perth, and comprise five granted exploration licences and two granted mining leases.
Bankable feasibility studies have been released for each, demonstrating what the company describes as exceptional financial metrics.
The Muchea project sits 50km north of Perth, and comprises two granted exploration licences and one application, as well as one mining lease. A bankable feasibility study for this project has also been released, and also demonstrates outstanding financial metrics.
The company also holds the Boyatup silica sand project 100km east of Esperance.
This article was developed in collaboration with VRX Silica, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.