VRX Silica (ASX: VRX) has successfully secured binding commitments from sophisticated and professional investors to raise $5 million before costs through a two-tranche placement of fully paid ordinary shares.
This capital-raising initiative has garnered strong support from both existing shareholders and new institutional investors, including a notable commitment of $2 million from major shareholder Sparta Invest AG.
The funds will primarily be directed towards the development of the Arrowsmith North Silica Sand Project, which is poised for advancement as it awaits anticipated environmental approvals.
The placement will be executed at a price of $0.042 per share, reflecting a 26.3 per cent discount to the last closing price of $0.057 per share on December 5, 2024.
This pricing also represents a 22.5 per cent discount to the five-day Volume Weighted Average Price (VWAP) of $0.0542 per share and a 23.7 per cent discount to the 15-day VWAP of $0.0551 per share, both calculated up to and including December 5, 2024.
Unified Capital Partners Pty Ltd is acting as the sole lead manager and bookrunner for this placement.
Managing Director Bruce Maluish expressed optimism regarding the capital raising, stating that it positions VRX Silica strongly as the company finalises environmental and other approvals necessary for the development of its flagship project at Arrowsmith North.
He acknowledged the vital support from existing shareholders and welcomed new investors into the fold.
The Arrowsmith North project is strategically significant for VRX Silica, which holds several silica sand projects in Western Australia.
With production anticipated to commence in 2025, this project is set to meet the increasing global demand for high-quality silica sand, a critical resource utilised in various industries, including glass manufacturing and renewable energy technologies.
This capital raising not only underscores investor confidence in VRX Silica’s growth strategy but also reinforces the company’s commitment to advancing its projects in response to market demands.
The successful placement is expected to facilitate further progress towards production at Arrowsmith North while enhancing the company’s overall financial position as it navigates through regulatory processes and prepares for operational commencement.
