THE BOURSE WHISPERER: Ventnor Resources (ASX: VRX) has entered into a new agreement with Australian Silica Pty Ltd to immediately acquire 100 per cent of the Muchea silica sand project in Western Australia.
Ventnor Resources explained the agreement is in lieu of an option arrangement it previously announced to ASX on 26 March 2018.
The Muchea project is a potentially high-grade, high tonnage silica sand project located near Muchea, 50 kilometres north of Perth and is strategically adjacent to Brand Highway and a rail connection to Kwinana port for bulk handling.
The company anticipates the Muchea project will complement the 350 square kilometres of tenements it already holds at the Arrowsmith silica sand project.
In addition, Ventnor has received firm commitments for a capital raising of $2.4 million from professional and sophisticated investors by the issue of 40 million shares at six cents each, including $207,000 (3.45 million shares) been committed by Ventnor directors, subject to shareholder approval.
“Under the new transaction structure, ASX has confirmed that the company is no longer required to re-comply with ASX’s admission requirements for the re-listing of the company and is working with ASX towards the lifting of its current suspension and the recommencement of trading in its shares on ASX as soon as possible,” Ventnor Resources said in its ASX announcement.