- VRX Silica (VRX) has revealed the planned sale of its Biranup Project in WA's Goldfields region has been delayed
- The silica sand company agreed to divest the project to New Energy Metals, soon to be renamed NickelX, earlier this year
- New Energy had planned to list on the ASX as part of the deal, however, a backlog of new listings has delayed the initial public offering (IPO)
- As a result, VRX Silica now expects the sale to be completed by June 2021, if minimum expenditure commitments are met
- Along with the Biranup sale update, VRX has also revealed its offtake agreements for its Arrowsmith North Silica Sand Project are progressing
- Shares in VRX Silica are trading up a healthy 15.2 per cent at 38 cents each
VRX Silica (VRX) has revealed the planned sale of its Biranup Project, located in WA's Goldfields region, has been delayed.
The silica sand company had agreed to divest the project to New Energy Metals, soon to be renamed NickelX, back in July this year.
However, the materials stock has since announced in a business update released to the market on Thursday that the deal won't be completed this year.
The announcement explains that New Energy had planned to list on the ASX before buying the project, however a backlog of new listings has delayed the IPO from going ahead.
Due to the delay, VRX Silica has had to adjust its own timeline for divesting the project, with the sale now expected to be completed by June 2021.
The sale is also contingent on New Energy meeting its minimum exploration expenditure obligations before the first quarter of 2021.
Alongside the Biranup Project delay, VRX has also used today's update to reveal its offtake agreements for its Arrowsmith North Silica Sand Project are progressing.
The company has sent off a number of silica sand samples from Arrowsmith to eight potential new customers.
"VRX is in an enviable position as we continue to engage with potential customers in South Korea, Japan, Philippines, Malaysia and Thailand. Demand is growing
for high quality silica sand products across south-east Asia whilst the supply-side continues to be squeezed," VRX’s Managing Director Bruce Maluish said.
"Despite the inevitable slowdown earlier this year due to COVID-19, most
organisations in South East Asia we are engaging with have expressed positive sentiment towards stimulus spending and growth in construction in general across the region, and are gearing up their operations for 2021 and beyond," he added.
Shares in VRX Silica are trading at 38 cents, up a healthy 15.2 per cent at 12:47 pm AEDT.