VRX welcomes new European strategic investor
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VRX has received a vote of confidence in its silica sand projects with a new strategic European-based investor taking up a 3.5 per cent interest in the company.
This follows due diligence inquiries on the company and its Arrowsmith North, Arrowsmith Central and Muchea silica sands project and was undertaken via a transfer of shares from the company’s top 20 shareholders.
As part of this investment, members of the VRX Silica (ASX:VRX) board have reduced their interest in the company from 14 per cent to 12 per cent.
The shares were priced in line with VRX’s prevailing market price.
VRX has four silica sand projects in Western Australia.
Arrowsmith North project is an advanced project with mining leases in place for the production of 53 million tonnes (Mt) of silica sand over 25 years, or about 2Mt per annum, for total sales of nearly $2.7bn.
The company has also formally submitted the Environmental Protection Authority referral for the project, which notes that its development can be achieved without significant residual impacts on the environment.
A mining lease is also in place for the Arrowsmith Central project.
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.