- VRX Silica Limited (ASX:VRX) has recently welcomed a substantial investment in the Company’s shares at market price.
- The new investor holds a total shareholding of around 3.5 per cent in VRX Silica.
- The silica sand explorer is progressing with the environmental approval process of its high-grade projects in Western Australia.
A new strategic European-based investor has made a substantial investment in VRX Silica Limited’s (ASX:VRX) shares at market price. The silica sand explorer has welcomed this substantial investment by its new Top 20 investor, which will sit alongside the European investor’s significant interests in other resources companies listed on the ASX.
Following the key update, VRX Silica shares marked an uptick of ~9 per cent to AUD 0.310 on 1 April 2021.
VRX Silica is a 100% owner of three high-value silica sand projects – Muchea, Arrowsmith North and Arrowsmith Central – all located within close proximity to Perth, Western Australia. These projects are large scale, high-grade and low impurity silica sands projects, with access to established infrastructure (logistics, power, water).
Key Details of Investment
The investment by the new investor follows due diligence inquiries on VRX Silica and its Muchea, Arrowsmith North and Arrowsmith Central Silica Sand Projects. The investment was carried out through a transfer of fully paid ordinary shares from the Company’s Top 20 shareholders. Notably, the investment does not dilute existing VRX shareholders otherwise.
The latest investment adds to new investor’s existing exposure to the Australian mining sector.
Members of the Company’s Board agreed to transfer a portion of their holdings to stimulate the level of investment sought, lowering their aggregate interest from about 14 per cent to 12 per cent of shares on issue.
Facilitated by an Australian broking firm, the transfer of these shares was priced in accordance with the Company’s prevailing market price. Along with the Company’s shares purchased on-market before this transfer, the new investor holds a total shareholding of around 3.5 per cent in VRX Silica.
Striking Progress at Silica Sand Projects
VRX Silica has been making remarkable progress at Muchea and Arrowsmith projects, which are now close to the production phase.
The Company has already received the grant of Mining Leases and miscellaneous licences for its silica sand projects. It is currently progressing with the environmental approval process for the grant of mining permit at these projects.
Recently, the Company declared the formal submission of its referral to the EPA (Environmental Protection Authority) for environmental approval for its Arrowsmith North project. The recent referral infers that the Arrowsmith North project can be developed without any substantial residual impacts on the environment. This is due to the implementation of mitigation measures, specifically the intended mining & rehabilitation methodology.
VRX Silica believes that it is ideally placed to meet the growing demand for silica sand as it advances its high-grade projects in Western Australia. The silica sand explorer remains focussed on establishing long term offtake partnerships with key participants in the Asian market.