VRX Silica Declares Sale of Biranup Project to New Energy Metals to Focus on Silica Sand Projects

  • Jul 01, 2020 AEST
  • Team Kalkine
VRX Silica Declares Sale of Biranup Project to New Energy Metals to Focus on Silica Sand Projects


  • VRX Silica to sell its Biranup Nickel and Gold Project to New Energy Metals, eyeing to focus on becoming a global high-quality silica sand producer.
  • VRX will receive over 6.25 million ordinary fully paid shares in NRG and cash payments upon achievement of agreed milestones.
  • VRX is pleased to execute an agreement on the terms that would enable it to share in any future exploration success.

In a significant development, VRX Silica Limited (ASX:VRX) has announced sale of its 100 per cent owned subsidiary and holder of Biranup nickel and gold project, Ventnor Gold Pty Ltd (VGPL) to New Energy Metals Limited (NRG).

VRX Silica has entered into a conditional agreement with NRG, which is a non-listed public company eyeing an ASX listing and an IPO later this year. NRG has indicated that it will offer priority to VRX Silica shareholders for IPO applications.

The sale of Biranup Project to NRG will allow VRX Silica to focus on its explicit objective of becoming an international supplier of high-grade silica sand.

Following the release of announcement, VRX stock traded ~10 per cent higher around mid-day to $0.100.

Key Terms of Conditional Agreement

Under the conditional agreement, NRG will acquire the Biranup Project via the purchase of 100 per cent of VGPL’s issued share capital. Consequently, VRX Silica will receive over 6.25 million ordinary fully paid shares in NRG and cash payments upon achievement of agreed milestones.

The sale consideration involves:

  • Issue of 6,250,000 fully paid ordinary shares in NRG at a deemed issue price of 20 cents at completion.
  • Cash milestone payments of:
    • $200,000 following determination of a JORC compliant inferred resource of at least 7.5mt at a grade of 0.5% copper and 2% nickel on the land containing the tenements;
    • $200,000 at the finalisation of a feasibility study relating to Biranup Project, exhibiting an ability to operate it as a commercially feasible enterprise; and
    • $500,000 at the first commercial extraction of any form of mineral products, minerals, ore or concentrates from Biranup Project.

The completion of sale of Biranup Project to NRG is also subject to and contingent upon certain conditions as highlighted below:

Know About High-Grade Biranup Project

Comprising a total project area of 393 sq. km, VRX Silica’s Biranup Project includes six granted tenements that do not have Native Title claims or pastoral lease. However, the project encompasses a region hosting different mineralisation styles.

The project is located in the high-grade Albany - Fraser Orogen area in WA (Western Australia), that hosts the top-notch ~10Moz Tropicana Gold Deposit and IGO’s Nova nickel mine. The highly prospective area is also the subject of a much-anticipated drilling program presently being undertaken by Legend Mining.

It is imperative to note that nickel sulphide focused exploration company, NRG also has an exposure to the high-grade Albany Fraser Oregen area and South West Yilgarn. Besides, NRG retains an exclusive nickel sulphide prospectivity database to create further projects.

Work Undertaken by VRX Silica at Biranup Project

VRX Silica has discovered the potential for base metal mineralisation at Biranup Project. The Company has effectively drilled and intersected nickel and copper sulphides on a structurally controlled geophysical target at the Fire Dragon Prospect.

Besides, VRX has compiled a regional geophysical and geological dataset that is available to:

  • initiate a rigorous targeting exercise over the current and recently acquired tenements, and
  • guide any further tenement acquisition.

The dataset compiled by VRX Silica is likely to offer an ideal start to NRG to progress development at Biranup Project.

Must Read! Walk Through VRX Silica’s Remarkable Performance at Arrowsmith Projects Since Acquisition


The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. All pictures are copyright to their respective owner(s). Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK