VRX Silica (ASX: VRX) announces the completion of a top-down review of corporate overheads and expenditure following its recent $2.46m fully underwritten entitlement offer.
The company has introduced cost-saving initiatives across the business, with director fees and salaries reduced by 50 per cent and significant cost control measures implemented on non-critical exploration activities and project development costs, personnel and corporate administration. The changes take effect immediately.
VRX continues to progress as its main priority the environmental approvals process for its Arrowsmith North silica sand project, which is now in its final stages. An update was provided to the ASX on 30 May 2024.
The company expects these cost-control measures will remain in place through to completion of this process.
“Pleasingly, VRX is through to the final stages of the environmental approvals process for Arrowsmith North and management continues its dialogue with both State and Federal authorities to complete this process,” non-executive chairman Paul Boyatzis said.
“While the company is well funded following its recent capital raising, the board is cognisant of the need to preserve capital as the regulatory approvals process continues beyond originally expected timeframes. These cost-control measures form part of a prudent capital management program for the company and have been implemented to ensure that VRX is best positioned to advance Arrowsmith North into development and production.
“Shareholder frustration at industry wide delays in the approvals process is evident and understandable, and the board thanks shareholders for their continued support and patience.”
VRX advises that the annual base salary of managing director Bruce Maluish will reduce from $340,000 to $170,000. There are no other changes to his employment terms.
