VRX Silica (ASX: VRX) has entered into additional non-binding offtake term sheets for the supply of silica sand foundry products from its Arrowsmith North silica sand project into the foundry industries in South Korea, Japan and Taiwan.
The offtake parties are all significant suppliers in their respective countries. Namgwang Casting Materials Ind Co., Ltd and Woori Corporation are leading suppliers of sand to the foundry industry in South Korea. Yamakawa Sangyo Co., Ltd is a leading supplier to the foundry industry in Japan. FarnHwa Enterprise Co., Ltd is a leading supplier of water filter media and sized dry sand in Taiwan.
HIGHLIGHTS
- New detailed non-binding offtake term sheets signed with significant sand importers in South Korea, Japan and Taiwan
- Offtakers supply to sizeable foundry sand end users which have confirmed superior quality of Arrowsmith North silica sand for the foundry industry after comprehensive testing
- Adds 440,000 tonnes of offtake interest for Arrowsmith North silica sand for an aggregate of 640,000 tonnes per year that is expected to grow
- Completion of permitting expected Q1 2025, including environmental and mining approvals
- Supports project financing initiatives currently being explored
VRX Silica managing director Bruce Maluish said:
“Increasing interest in our Arrowsmith North silica sand foundry products is demonstrated by these additional term sheets and we expect more to follow. These companies are established leaders in their industry and VRX is pleased they have signed up as we expect them to be long-term buyers.
“The South Korean and Japanese foundry industries in particular are an extensive support service for the automobile and marine industries. VRX’s engagement with these buyers will expand awareness of the quality of our product in these large and important Asian markets and will lead to further inquiries from parties keen to secure long-term supplies of Arrowsmith North silica sand.
“Importantly, these term sheets further vindicate VRX’s strategy to ensure production of a unique Australian highly sought-after product and to secure the right customers for our silica sand products. Market demand for the high-quality foundry sand we can produce remains very strong and, having now signed up five reputable partners, will only further strengthen our credibility and position in the marketplace.
“We will focus on converting these non-binding term sheets into binding offtake agreements to support our capital funding requirements and continue to progress talks with other parties involved in the foundry sand and glass-making industries.”
