VRX Silica receives strong potential offtake interest

VRX Silica receives strong potential offtake interest

VRX Silica (ASX: VRX) has received strong interest for the purchase of significant tonnages of silica sand products from its two Arrowsmith Silica Sand Projects, located 270km north of Perth, WA, and its Muchea Silica Sand Project, 50km north of Perth. The Company has identified numerous markets in the Asia-Pacific region and met with a number of potential offtake customers for the sale of silica sand products from Arrowsmith and Muchea. The Company will be able to commit to binding offtake agreements following the approval of Mining Permits at its silica sand projects.


VRX Silica (ASX: VRX) has received strong interest for the purchase of significant tonnages of silica sand products from its two Arrowsmith Silica Sand Projects, located 270km north of Perth, WA, and its Muchea Silica Sand Project, 50km north of Perth.

HIGHLIGHTS

·       Enquiries and expressions of interest received from 20 manufacturers across the Asia-Pacific region

·       Potential annual silica sand sales identified to-date of over 1.6 million tonnes for glassmaking and almost 900,000 tonnes for the foundry industry

·       Tonnages and quality of products sought are capable of production from the Arrowsmith and Muchea Silica Sand Projects

·       Indicates significant and growing demand for high quality silica sand in the region

In November 2018 the Company appointed Mr Yoonil Kim as its International Sales Manager. Mr Kim is a South Korean national with over 15 years’ experience marketing and selling silica sand products to glass manufacturers and foundries across the Asia-Pacific region.

In February 2019 VRX Silica released Silica Sand Product Catalogues for silica sand products capable of production from the Arrowsmith and Muchea projects, including two products from each of Arrowsmith and Muchea for the glassmaking industry and four products from Arrowsmith for the foundry industry.

The Company has identified numerous markets in the Asia-Pacific region and met with a number of potential offtake customers for the sale of silica sand products from Arrowsmith and Muchea.

The Company will be able to commit to binding offtake agreements following the approval of Mining Permits at its silica sand projects.

VRX Silica Managing Director Bruce Maluish said: “We are encouraged by the strong interest for silica sand products from our Arrowsmith and Muchea Projects, and the fact that this has arisen in the brief time since our testwork determined product types and the distribution of our Silica Sand Products Catalogue to potential customers across the Asia-Pacific region.

“We expect to receive further enquiries for silica sand products and will look to progress this strong interest into binding offtake agreements before committing to funding arrangements for processing plant requirements,” said Mr Maluish.

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