VRX confirms additional offtake deals for Arrowsmith North

As it moves toward first production in the second half of next year at its Arrowsmith North project, VRX Silica has secured additional offtake agreements.

West Perth-based VRX told the market on Thursday that it had signed two offtake deals, which it said would add to its recent agreements – supplying up to a minimum of 410,000 tonnes of silica sand products – inked in late-October.

“The two new offtake contracts are for the supply of an aggregate minimum of 550,000 tonnes per annum of high-quality silica sand products from Arrowsmith North to two well-established, reputable and substantial suppliers into the foundry and glassmaking industries in China,” the company said.

VRX boss Bruce Maluish said the offtake agreements were a testament to external interest in the company’s products at Arrowsmith North and ‘form an important precondition for potential debt financers’.

The junior also provided a finance update, announcing it had appointed Pareto Securities as its manager in relation to fixed income debt financing, in order to help facilitate construction activities at VRX’s flagship project.

On September 2, Arrowsmith North – located 270km north of Perth – officially received the green light from state environment minister Matthew Swinbourn, much to the delight of Mr Maluish, who said this would aid the junior in finalising its remaining required approvals and permits. 

VRX shares closed trade up 3 per cent to 7 cents.