VRX Silica (ASX: VRX) has confirmed that assay results for high-grade silica flour produced from its Muchea silica sand project have conformed with the speciality specifications of potential end users.
The assay results, from a laboratory in Germany, boost VRX’s ambition for silica flour produced from Muchea to add a new product line to the company’s overall silica business.
VRX has received a number of enquiries for silica flour products and samples have been dispatched to a select number of potential customers in Asia.
“These assay results are the next step in examining the potential for new product lines and downstream processing opportunities for silica sand from our Muchea silica sand project, including an examination of the viability of new industries in Western Australia,” managing director Bruce Maluish said.
“VRX is considering a range of downstream processing opportunities. These R&D activities, which start with the production of silica flour, will potentially result in higher value products that maximise the value of VRX’s world-class high-quality Muchea silica sand project.”
Potential markets for fine silica being investigated include LCD, pharmaceutical and flint glass, Epoxy Moulding Compound (EMC) encapsulant, anti-stain paint filler, high-tensile fibreglass yarn, 3D printer compounds, laser printer inks, cristobalite (road marking paint) quartz crucibles and semi-conductors.
The update on the Muchea silica flour assay results comes as VRX finalises a partially underwritten renounceable entitlement offer to raise up to $3.14 million (before expenses).
The proceeds of the entitlement offer will be applied towards the company’s Muchea and Arrowsmith North silica sand projects, VDT trials and environmental follow-up.
The renounceable entitlement offer is one new share for every 13 shares held, priced at $0.07 per share. For every two shares subscribed under the offer, participants will also be issued with one free attaching option that is exercisable at $0.18 each on or before 31 August 2025.
The rights stop trading at the close of business today ahead of the proposed April 30 closing date for the entitlement offer.
