Highlights
- VRX received a positive EPA report for Arrowsmith North, recommending approval to the Minister for Environment.
- Non-binding offtake agreements for Arrowsmith North have reached 640,000 tonnes per annum
- VRX raised AU$5 million through a capital placement.
- The environmental approval process for Arrowsmith North is expected to conclude by the end of the March 2025 quarter.
VRX Silica Limited (ASX:VRX), a pure-play silica sand company, wrapped up its December 2024 quarter with notable strides at its Arrowsmith North Silica Sand project. Key achievements included the finalisation of its Environmental Protection Authority of Western Australia (EPA) assessment report, which recommended approval to the Minister for Environment. Additionally, VRX raised AU$5 million through a capital placement, strengthening its project outlook.
VRX Advances Arrowsmith North Project with Key EPA Approvals
In late October 2024, VRX organised a site visit for representatives from several key government agencies, including the EPA EPA, Department for Water and Environmental Regulation (DWER), Department of Biodiversity, Conservation and Attraction (DBCA), and Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW). This visit allowed the agencies to gain firsthand insight into the project's mining and processing environment, essential for the final assessment by the EPA.
In mid-November 2024, VRX announced the publication of the Response to Submissions (RtS) on the EPA’s website, marking a significant milestone for the project. This acceptance confirmed the EPA’s readiness to finalise its assessment. A subsequent consultation with the EPA Board in November allowed VRX to present the project and discuss proposed approval conditions, ensuring all key issues were addressed before the final report.
By early January 2025, the EPA issued its final report, recommending approval of the Arrowsmith North development, subject to standard mining operations and rehabilitation commitments.
The publication of the EPA report triggered a three-week review period. Following this period and the resolution of any appeals by an independent appeals convenor, the Minister for Environment is expected to make a decision on the project. The environmental approvals process is anticipated to be finalised by the end of the March 2025 quarter, including approvals from the DCCEEW. Other permitting processes are running in parallel and are expected to follow swiftly once the environmental approval is granted.
Capital Raising
In December 2024, the company raised AU$ 5 million (before costs) through a placement of fully paid ordinary shares to professional and sophisticated investors, with an issue price of 4.2 cents per share.
Subsequent to the quarter's end, in mid-January 2025, VRX announced additional non-binding offtake term sheets for silica sand foundry products from Arrowsmith North to South Korea, Japan, and Taiwan. The agreements are based on assumptions from the BFS, with a target price of US$38-43 per tonne, and total offtake interest now stands at 640,000 tonnes.
The share price of VRX was AUD 0.049 on 31 January 2025.