Emerging silica sands miner VRX Silica (ASX: VRX) has received three letters of intent for the offtake of about 590,000 tonnes of product annually from its assets in Western Australia. The LOIs were from a diverse range of silica sand distributors in the Asia-Pacific region – the company’s primary target market for the supply of silica sand – to supply product to different countries for a range of industries.
Indicative interest from three different distributors to purchase a total of 590,000 tonnes of silica sand per year;
All three interested parties have long-term associations with the silica sand supply sector in the Asia-Pacific region;
Buyers in the Philippines, China and South Korea have requirements in three different industries.
VRX Silica Ltd (ASX :VRX) (VRX or Company) (formerly Ventnor Resources) is pleased to announce that it has received three nonbinding Letters of Intent (LOIs) for the offtake of an aggregate 590,000 tonnes of silica sand per annum from the Company.
The LOIs have been received from a diverse range of silica sand distributors in the Asia-Pacific region – the Company’s primary target market for the supply of silica sand – to supply silica sand to different countries for a range of industries.
VRX Managing Director Bruce Maluish commented, “The receipt of these three LOIs supports the Company’s research that there is significant demand for silica sand products of the type capable of production from the Company’s Arrowsmith and Muchea silica sand projects. This is a solid foundation for the Company’s initial aim of establishing demand for more than 1 million tonnes per annum from each individual project area.”
Details of the distributors and the LOIs generally are set out below.
Si Resources Corporation – Philippines
Si Resources Corporation (SRC) is a wholly owned subsidiary of Rock Energy International Corporation; during the last two decades it has been one of the leading distributors of imported silica sand within the Philippines.
SRC is located in Manila South Harbour, Philippines, and supplies the Philippine glass bottle manufacturing industry with 110,000 tonnes of silica sand annually as well as supplying other industrial users of silica sand, creating a total annual demand of 290,000 tonnes.
SRC’s LOI covers the supply of this tonnage annually from the Company with pricing dependent on final specification.
The specification* sought by SRC can be met from the Arrowsmith Silica Sand Project production.