THE BOURSE WHISPERER: VRX Silica (ASX: VRX) completed an agreement with Silatec Pty Ltd for the acquisition of the Boyatup silica sand project, located 100 kilometres east of the Western Australian port town of Esperance.
VRX Silica will issue two million of the Company’s ordinary fully paid shares plus $10,000 in full consideration for the acquisition of Boyatup, located on E69/3560 which has a total area of 105.7 square kilometres.
The project is connected to the Esperance Bulk Port via a sealed road which by-passes the city of Esperance.
The tenement is almost totally covered by vacant crown land (VCL), only a very small section is over farming freehold land which is of no interest.
The Esperance Deep Water Bulk Port has been the exit port for bulk nickel and iron ore commodities and can load ships of up to 200,000 tonnes.
“The Boyatup deposit is subtlety different to the company’s Arrowsmith and Muchea silica sand projects and can provide yet another option in the product range that the company can market in Asia,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.
“The company will conduct a first pass drill program following an Aboriginal Heritage study on the granted PoW drill sites.
“The drill program will also provide adequate sample for a preliminary testwork program to determine the final sand quality, a preferred process circuit design and supply potential product samples to be forwarded to interested buyers
“The company, and its International Marketing Manager have now compiled a significant number of potential buyers for glass making and foundry industry raw materials.”