Ventnor Resources Secures Option Over New Silica Sand Project

THE BOURSE WHISPERER: Ventnor Resources (ASX: VRX) announced it has secured an option to acquire a potentially high-grade, high-tonnage silica sand project near Muchea, north of Perth in Western Australia.

Ventnor Resources explained the option to acquire the Muchea silica sand project is subject to shareholder and Australian Securities Exchange (ASX) regulatory approvals.

Ventnor said the ASX has determined the option grant constitutes a change in the nature and/or scale of the company’s activities and has told Ventnor that ASX Listing Rules 11.1.2 and 11.1.3 apply to the purchase.

This has given rise to the following:

The proposed transaction requires shareholder approval under the ASX Listing Rules and therefore may not proceed if that approval is not forthcoming;

Ventnor Resources is required to re-comply with ASX’s requirements for admission and quotation and therefore the proposed transaction may not proceed if those requirements are not met; and

The ASX has an absolute discretion in deciding whether or not to readmit the company to the Official List and to quote its securities and therefore the proposed transaction may not proceed if ASX exercises that discretion.

Considering these consequences Ventnor cautioned that, “investors should take account of these uncertainties in deciding whether or not to buy or sell the company’s securities.”

The Muchea silica sand project is located adjacent to the Brand Highway and a rail connection to Kwinana port for bulk handling.

Ventnor Resources has undertaken a due diligence review, from which it claims to confirm the potential of the prospect.

Assays received by the company have indicated a high-quality +99.7 per cent silicon dioxide (SiO2) deposit over an area of more than 3,400 hectares.

Ventnor said that limited historical exploration for silica sand has been undertaken in the project area, however the company has been provided details of a reconnaissance sampling program utilising the existing accessible tracks.

A total of 44 hand auger samples to a depth of around two metres were completed.

Samples were submitted to the SGS laboratory in Perth and analysed for SiO2, via ICP silica by difference, with the results indicating that, at the surface, there exists very high purity silica sand with the average of all samples returning +99.8% SiO2.

Ventnor explained it has been investigating markets in the Asia-Pacific region for the supply of high-quality silica sand used for glass manufacturing, concrete construction and as a tech metal, which is experiencing increasing demand due to diminishing supply.

The company intends to take advantage of this environment with both the Muchea silica sand project and its existing and complementary Arrowsmith silica sand project.

“Early indications, based on the company’s due diligence investigations and the results of testwork to-date, are that both projects are highly prospective, and the Muchea silica sand project is extensive and high-grade, with the potential to be one of the largest high-grade silica sand deposits in the world,” Ventnor Resources said in its ASX announcement.

“The company’s objectives are to progress both projects by conducting further exploration and test work, conduct substantive environmental reviews and seek approvals, and to conduct scoping studies to assess the economic viability of developing, in each case, a medium scale mining and processing operation adjacent to each project and utilising existing rail and port facilities to export high quality silica sand to Asian markets.”

 

Email: info@ventnorresource.com.au

Website: www.ventnorresources.com.au