Highlights

• The EPA recommended approval of the Arrowsmith North project to the Minister for Environment in January 2025.
• An appeal lodged by the Conservation Council of WA is under review with permitting expected to be completed in the second quarter of 2025.
• Progress on environmental approvals has boosted lender confidence; an independent technical review is due for completion in Q2 2025.
• VRX has secured non-binding term sheets for the supply of 440,000 tonnes per annum of foundry-grade silica sand to buyers in Taiwan, Japan, and South Korea.
• Total offtake interest has reached 640,000 tonnes annually, including prior commitments with Dong A and Dong Nam.

VRX Silica Limited (ASX:VRX) made significant progress during the quarter ended 31 March 2025, particularly in advancing environmental approvals for its flagship Arrowsmith North Silica Sand Project. The company also secured new offtake agreements and continued to strengthen its project financing prospects through parallel permitting and technical review processes.

Environmental Approval Progress at Arrowsmith North

In January 2025, the Western Australian Environmental Protection Authority (EPA) published its Assessment Report for Arrowsmith North, recommending the project for approval by the Minister for Environment, subject to conditions that have been accepted by VRX.

Following this recommendation, a statutory three-week appeals period was initiated

During this time, the Conservation Council of WA lodged an appeal. The Office of the Appeals Convenor (OAC) commenced its review, with VRX submitting formal responses in February and April. A final report to the Minister for Environment is expected to be submitted in early May 2025, after which a final decision will be made.

Other permitting processes including federal environmental approvals, mining proposals, and works approvals are progressing in parallel and are expected to conclude shortly after the State decision is issued.

Progress on environmental approvals has increased lender interest. An independent technical review, commissioned in late 2024, is on track for completion in Q2 2025.

New Offtake Agreements Expand Market Reach

During the latest quarter, VRX secured additional non-binding offtake term sheets for 440,000 tonnes per annum of foundry-grade silica sand over four years. These agreements target the foundry industries in Taiwan, Japan and South Korea.

New offtake partners include:

• Namgwang Casting Materials and Woori Corporation (South Korea)
• FarnHwa Enterprise Co., Ltd (Taiwan)
• Yamakawa Sangyo Co., Ltd (Japan)

The indicative pricing in the term sheets aligns with VRX’s updated Bankable Feasibility Study (BFS) released in March 2024, which estimates pricing at US$38–43 per dmt (dry metric tonne). Annual production is expected to reach 2.2 million tonnes, with a planned scale-up from 800,000 tonnes to 1.1 million tonnes annually over the first two years.

VRX now has offtake interest covering 640,000 tonnes per annum, including previously secured agreements with Dong A and Dong Nam in South Korea.

VRX shares were trading at AU$0.041 per share at the time of writing on 29 April 2025.