- VRX Silica (VRX) has received binding commitments to undertake a $7 million placement
- The funds will be raised through the issue of more than 38 million new shares to institutional, professional, and sophisticated investors
- Shares will be priced at 18 cents, representing a 23.4 per cent discount to VRX’s 23.5 cent-closing price on November 19
- The funds will be used for work at VRX’s Arrowsmith North, Muchea, and Boyatup silica sands projects in Western Australia
- VRX Silica is up 2.13 per cent on the market with shares trading for 24 cents
VRX Silica (VRX) has received binding commitments to undertake a $7 million placement.
The future silica sand producer entered back-to-back trading halts on November 18, but did not disclose how much it hoped to raise at the time.
All up, 38.9 million new shares will be issued to institutional, professional, and sophisticated investors at 18 cents.
This price represents a 23.4 per cent discount to VRX’s of 23.5 cent-closing price on November 19, and a 13.6 per cent discount to the 10-day volume-weighted average price of 20.8 cents.
VRX will allocate the money to pre-production work at its Arrowsmith North Silica Sand Project and undertake additional drilling at its Muchea and Boyatup silica sand projects, all of which lie in WA.
“We are delighted with the strong support received for the capital raising from a wide range of investors, with bids received well in excess of the amount raised,” Managing Director Bruce Maluish said.
“This placement positions VRX to rapidly advance the development of our silica sand projects, in particular at Arrowsmith North for grade control drilling, confirmatory testwork, drilling and equipping water bores, port access design, construction of access roads, and final engineering,” he added.
VRX Silica is up 2.13 per cent on the market with shares trading for 24 cents at 12:07 pm AEDT.