VRX raises funds to advance silica sands projects
PERTH (miningweekly.com) – ASX-listed junior VRX Silica will raise A$4-million through a share placement to accelerate both its Arrowsmith and Muchea silica sands projects, in Western Australia.
The company on Monday said that it had completed a bookbuild to raise A$4-million, and will place more than 34.78-million shares, at a price of 11.5c each.
Participants in the placement will also be issued with one option for every two shares subscribed for, exercisable at 18c each and expiring 18 months after the date of issue.
“We are delighted with the strong demand shown by both new and existing shareholders in this placement, including a number of institutional investors,” said VRX MD Bruce Maluish.
He noted that the recent bankable feasibility studies (BFS) for Arrowsmith Central and Muchea had demonstrated the potential for the projects, noting that the funds raised would be used to rapidly advance the development of the two projects.
The BFS on Muchea estimated that the project would require a capital investment of A$32.82-million to support a two-million-tonne-a-year operation, while Arrowsmith Central would require a capital spend of A$25.8-million to produce 39.6-million tonnes of silica sand over an initial 25-year mine life.
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