VRX Silica Inks Farm-In and JV Agreement for Geothermal Exploration Permit
THE BOURSE WHISPERER: VRX Silica (ASX: VRX) has entered into a Farm-In and Joint Venture Agreement with Hydro X Gen Pty Ltd (HXG) covering the company’s granted Geothermal Exploration Permit (GEP) at Dandaragan north of Perth in Western Australia.
VRX Silica believes in the potential of geothermal technology to produce long term dispatchable renewable energy for the Mid-West region, including the company’s Arrowsmith silica sand projects.
For its part, HXG is planning to conduct an initial public offering and list on the Australian Securities Exchange as Steam Resources Limited in 2024.
VRX announced granting of GEP 44 in July 2023, which consists of eight contiguous blocks covering an area that includes the Walyering gas field currently under development by EP447 Joint Venture between Strike Energy 55% and Talon Energy 45%.
The company sees the project offering the opportunity to work with these gas companies and use extensive historical and current data to explore potential geothermal power options.
At the time, VRX said it expected such power options would support its silica sand projects and long-term ambitions to produce glass in Western Australia.
“This geothermal exploration initiative was undertaken by VRX Silica to support our silica sand projects and long-term ambitions for the production of glass in Western Australia,” VRX Silica managing director Bruce Maluish said in the company’s ASX announcement.
“Geothermal energy is a reliable, long-term renewable energy source and we identified this opportunity for a new renewable energy industry in the Mid West.
“We are impressed by the credentials of Steam’s management team and look forward to working with them to realise the full potential of the Dandaragan geothermal project.
“In the meantime, VRX Silica continues work on the development of our silica sand projects at Arrowsmith, Muchea and Boyatup as we strive to become a leading supplier globally of high quality silica sand products.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE