VRX Silica's successful capital raising

VRX Silica (ASX: VRX) has successfully raised $5 million through a two-tranche placement of fully paid ordinary shares. This capital raising was well supported by both existing shareholders and new institutional investors, with a notable $2 million contribution from major shareholder Sparta Invest AG. The funds will be directed towards the development of the Arrowsmith North Silica Sand Project.

Project development and future outlook

The successful capital raising by VRX Silica strengthens its financial position, enabling further progress on its silica sand projects, particularly the Arrowsmith North Silica Sand Project. The funds will be used as the company anticipates receiving the necessary environmental approvals. VRX aims to capitalize on the growing demand and limited supply of high-grade silica sand in the Asia-Pacific region. The placement, managed by Unified Capital Partners Pty Ltd, was priced at $0.042 per share, representing a discount to recent trading prices. With strategically positioned projects and ongoing assessments of other opportunities, VRX is poised to address the silica sand shortage and expand its presence in the global market.

Executive commentary on placement success

The placement received strong support from both existing and new shareholders, which is a great endorsement of our strategy to become a leading global supplier of silica sand.