VRX Silica (ASX:VRX) Raising AU$5Mn to Advance Arrowsmith North Project

December 10, 2024 11:48 AM AEDT | By Sonal Goyal

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VRX Silica (ASX:VRX) Raising AU$5Mn to Advance Arrowsmith North Project — Image source: Company Update

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Highlights

VRX is raising AU$ 5 million (before costs) through a two-tranche placement.

Sparta Invest AG, a major shareholder, has committed to investing AU$2 million in the placement.

The placement will provide funding for the development of the Arrowsmith North Silica Sand Project.

VRX Silica Limited (ASX:VRX) has secured firm commitments to raise AU$5 million (before costs) through a two-tranche placement.

The placement has garnered significant support from both existing shareholders and new institutional investors.

Notably, Sparta Invest AG, a major shareholder of VRX, has committed to investing AU$2 million in the placement.

The proceeds from this capital raise will support the development of the company’s Arrowsmith North Silica Sand project, ahead of expected environmental approvals.

Placement Details

The placement will be conducted in two tranches:

Tranche 1: an unconditional issue of approximately 115.5 million new shares, raising approximately AU$4.85 million
Tranche 2: a conditional issue of approximately 3.6 million new shares, raising nearly AU$0.15 million, to VRX Directors. This tranche is subject to shareholder approval, which will be sought at an Extraordinary General Meeting scheduled for early 2025.

The placement price has been set at AU$0.042 per share, representing a discount of 26.3% to the last closing price of AU$0.057 per share (as on 5 December 2024), 22.5% to the 5-day VWAP of AU$0.0542 and 23.7% to the 15-day VWAP of AU$0.0551 up to and including 5 December 2024.

The Tranche 1 shares are expected to settle on 16 December 2024, with allotment scheduled for 17 December 2024.

Unified Capital Partners Pty Ltd is acting as the sole lead manager and bookrunner to the placement.

VRX shares were trading at AU$0.047 per share at the time of writing on 10 December 2024.

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