VRX Silica (ASX: VRX) has received binding commitments from sophisticated and professional investors to raise $2.1 million (before costs) under a placement of fully paid ordinary shares.
The placement comprises:
- an unconditional placement of approximately 28.5 million new shares equating to approximately $2.05 million within the Company’s placement capacity under ASX Listing Rule 7.1; and
- a conditional placement of approximately 0.7 million new shares equating to approximately $50,000 to VRX directors, subject to obtaining shareholder approval at a general meeting.
The placement was supported by existing shareholders and new sophisticated and institutional investors. Unified Capital Partners Pty Ltd is acting as sole lead manager and bookrunner to the placement.
“This modest capital raising provides VRX Silica with additional funds to finalise pre-construction planning works for our silica sand project at Arrowsmith North, including final surveys, location engineering and design at the adjacent Arramall farm project site,” managing director Bruce Maluish said.
“It will also provide flexibility on timing for the acquisition of long-lead plant items for the project.”
The placement will be conducted at a price of $0.072 per share, representing a 17.2% discount to the last close of $0.087 per share on 20 November 2025 and an 18% discount to the five-day volume weighted average price of $0.0878 up to and including Thursday, 20 November 2025.
Arrowsmith North is a globally significant deposit of high-quality silica sand underpinning a mining project that will enable long-term production for the foundry, container glass and flat-glass markets in Asia. As detailed in the updated bankable feasibility study announced in March 2024, Arrowsmith North has a JORC-compliant Proved and Probable Ore Reserve of 221Mt @ 99.5% SiO2.
VRX is targeting first production in late 2026 following a final investment decision and commencement of construction of the processing plant and associated infrastructure expected in the first half of 2026.
VRX’s strategic significance is its position as a near-term, long-life and stable supplier of high-quality silica sand products from a Tier 1 jurisdiction. The company’s marketing strategy is to secure a portfolio of long-term offtake contracts with reputable partners to underpin a steady ramp-up of production while balancing price exposure and revenue stability amid the continuing strong inbound interest from market participants across the Asia-Pacific region.
VRX proposes to gradually ramp up production at Arrowsmith North from a starting level of about 1Mtpa to more than 2Mtpa of silica sand, with an operating life of several decades.
Last month, VRX announced it had entered into four binding offtake contracts for the sale of a minimum of 410,000 tonnes per annum of high-quality silica sand products from Arrowsmith North to customers in South Korea, Taiwan and the Philippines. These customers are long-established, leading suppliers into the automobile foundry industry and glassmaking industries in their respective countries and throughout Asia.
VRX is continuing discussions with several other prospective customers and negotiating additional binding offtake contracts.
Separately, interest from potential debt financiers has increased markedly following the granting of key approvals and a shortlist of debt finance proposals is currently being evaluated.
