Moving To Secure Financing For WA Project
VRX Silica Limited (ASX: VRX) continues to receive strong interest from potential customers as it moves to secure offtake and financing for its Arrowsmith North Silica Sand Project in Western Australia.
Managing Director, Bruce Maluish, said the company has shipped silica sand samples recently to eight new potential customers.
“VRX is in an enviable position as we continue to engage with potential customers in South Korea, Japan, Philippines, Malaysia and Thailand,” Mr Maluish said.
“Demand is growing for high-quality silica sand products across south-east Asia while the supply-side continues to be squeezed.
“Despite the inevitable slowdown earlier this year due to COVID-19, most organisations in south-east Asia we are engaging with have expressed positive sentiment towards stimulus spending and growth in construction in general across the region and are gearing up their operations for 2021 and beyond.
“VRX has received a tremendous level of interest for offtake from both our Arrowsmith North and Muchea projects, and we are much closer to selecting our first offtake partner to underpin development. We expect to agree terms in early 2021.”
He said the company has also continued to have positive engagement with potential debt financiers for the projects, with interest received from groups based in Australia and overseas.
Meanwhile, the company reported that there has been a delay in finalising its Biranup Project agreements.
In July 2020 the company announced to the ASX that it had entered into a conditional agreement with New Energy Metals Limited (to be renamed NickelX Limited) for the sale of its Biranup Project and listing of that company on the ASX.
Originally expected to complete by the end of 2020, increasing activity for new ASX listings generally has delayed progress on the IPO.
The company has agreed a new completion sunset date of June 30, 2021, subject to minimum exploration expenditure obligations being satisfied by the purchaser in Q1 2021. The IPO is scheduled for completion in early 2021.
