VRX Silica has booked a series of non-binding offtake term sheets in relation to the supply of silica sand foundry products from its Arrowsmith North project.
VRX Silica has booked a series of non-binding offtake term sheets in relation to the supply of silica sand foundry products from its Arrowsmith North project.
This announcement follows on from news earlier this month that the West Perth-based junior had received project approval from the Environmental Protection Authority of Western Australia.
With the EPA having published its assessment of the project, there is appeals period, which closes on January 30.
Once this has finished, state environment minister Reece Whitby has an opportunity to consider approving the project.
VRX’s latest range of non-binding term sheet agreements could result in parties from South Korea, Japan and Taiwan benefitting from certified foundry sand sourced from Arrowsmith North, located 270km north of Perth.
Mr Maluish said the company would be working hard to transition the term sheets into binding offtake deals long-term.
“Increasing interest in our Arrowsmith North silica sand foundry products is demonstrated by these additional term sheets and we expect more to follow,” he said.
“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.”
VRX closed trade up 4 per cent to 5.1 cents.
