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Highlights
- The environmental approvals process for the Arrowsmith North project has progressed to the Response to Submissions (RtS) stage.
- The company raised AU$617,332 through a renounceable pro-rata entitlement offer announced in May 2024, issuing one share for every 13 shares held.
- The funds raised would drive the development of the Muchea and Arrowsmith North projects.
- VRX has implemented cost-saving measures.
VRX Silica Limited (ASX: VRX) reported progress across its high-grade silica projects for the June 2024 quarter. The company highlighted that each of its five large scale, high-grade, low-impurity silica sand projects is capable of operating independently and serving diverse markets, including the glassmaking, foundry and casting industries. These industries are currently experiencing increasing demand and supply shortages.
VRX’s Arrowsmith North silica sand project is expected to meet market needs effectively. During the quarter, environmental approvals process advanced for the project.
The quarter also witnessed significant capital boost through an entitlement issue announced in May 2024.
Environmental approvals process progresses for Arrowsmith
The environmental approvals application for the Arrowsmith North project is currently at the RtS stage, where the company has addressed public feedback on the Environmental Review Document (ERD).
In April 2024, formal feedback was received from the State Environmental Protection Authority (EPA) and the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW). Following this, VRX updated the RtS document and confirmed receipt of the response by the EPA.
The RtS is crucial for the EPA's assessment process, as its publication indicates that the information provided is sufficient for concluding the assessment. An assessment report will be prepared by EPA will prepare for approval by the Western Australian Environment Minister, including recommended conditions. .
Muchea silica sand testing
The company transported a 1,000kg sample of Muchea silica sand to a Germany based laboratory for comminution testing to evaluate the production quality and yield of silica flour. The testwork follows the AU$2 million grant received under the Investment Attraction Fund (IAF) for matched funding.
Additionally, the company received AU$150,000 under the grant terms.
The R&D work is anticipated to lead to high-value downstream processing opportunities, enhancing the project value.
Numerous enquiries for silica flour products have been received, and samples were sent to potential customers in Asia. Responses to these samples will help determine the next steps in the program.
Capital raised in June 2024 quarter
The company announced an entitlement offer, issuing one share for every 13 shares held as of 8 May 2024. The offer, priced at AU$0.055 apiece, included a free attaching option exercisable at AU$0.18, expiring on 31 August 2025.
The entitlement raised AU$617,332, which will be used for the development of the Muchea and Arrowsmith North projects.
Cost-saving initiatives
During the quarter, the company concluded the top-down review of corporate expenditure and overheads, implementing cost-saving initiatives across the organisation.
VRX shares traded at AU$0.033 apiece on 30 July 2024.
