VRX Silica (ASX:VRX) Advances Environmental Approvals and Secures Offtake Agreements for Arrowsmith North

Highlights

• The Environmental Protection Authority (EPA) recommended approval for the Arrowsmith North Silica Sand Project after reviewing project revisions.
• New offtake agreements secured with major foundry industries in South Korea, Japan and Taiwan.
• The company is advancing a high-purity quartz flour manufacturing process with a target of 99.999% SiO2 (5N) purity.
• VRX raised AU$5 million through a share placement, with a significant contribution from major shareholder Sparta Invest AG.

VRX Silica Limited (ASX:VRX) advanced its Arrowsmith North Silica Sand Project in Western Australia during the six-month period ended 31 December 2024, achieving key milestones in securing environmental approvals.

The period also saw a capital raise of AU$5 million through a share placement, with shares issued at 4.2 cents each. The placement received backing from investors, including a substantial AU$2 million from major shareholder Sparta Invest AG.  

Environmental Approvals for Arrowsmith North

• Project Progress & Site Visit (Oct 2024)
  • VRX organised a site visit for government agencies.
• Response to Submissions (RtS)& EPA Review (Nov 2024)
  • The Environmental Protection Authority of Western Australia (EPA) accepted and published the Response to Submissions (RtS), including rehabilitation and offset strategies.
  • Government agencies reviewed and approved minor project revisions.
  • Amendment under Section 43A of EP Act was accepted by the EPA.
  • Variation under Section 156A of EPBC Act was accepted by the Commonwealth Department of Climate Change, Energy, the Environment and Water
• EPA Board Meeting (Nov 2024)
  • VRX presented the project to the EPA Board.
  • The EPA Board reviewed the draft assessment report and proposed conditions.
• EPA Final Assessment & Recommendation (Jan 2025)
  • The EPA published its report and conditions, recommending approval.
  • A three-week appeal period commenced.
• Appeal Lodged (30 Jan 2025)
  • The Conservation Council of WA (CCWA) submitted an appeal.
  • The Office of the Appeals Convenor is investigating the appeal on behalf of the Minister for Environment.
• Ministerial Decision & Next Steps
  • The Minister for Environment with determine the appeal outcome.
  • Other permitting approvals will follow the environmental approval.

New Offtake Agreements for Arrowsmith North

VRX has secured additional non-binding offtake agreements for Arrowsmith North’s silica sand foundry products in Taiwan, South Korea, and Japan. These agreements total 440,000 tonnes per annum over four years.

The company’s bankable feasibility study (BFS) forecasts silica sand pricing between US$38-43 per dry metric tonne (dmt) with an annual production target of 2.2 million tonnes throughout the full mine life.

With this agreement, the total offtake interest under the term sheet now reaches an aggregate of 640,000 tonnes.

Silica Flour Program and Government Support

VRX is advancing its plans to develop a high-purity quartz flour manufacturing process, targeting 99.999% SiO₂ (5N) purity. Bulk samples from the Muchea Silica Sand Project were dispatched to a Germany-based laboratory for testing, which confirmed the material’s suitability for processing.

Prospective buyers have validated the sample quality, with many expressing interest in long-term supply contracts. The company is also exploring potential markets for by-products generated during the silica flour processing.

The Western Australian State Government is supporting the testwork program and potentially the pilot plant through the Investment Attraction Fund (IAF) grant announced in July 2023.

VRX shares were trading 2.5% higher at AU$ 0.040 per share at the time of writing on 18 March 2025.