- VRX Silica (VRX) has sold its subsidiary, Ventnor Gold, to nickel miners New Energy Metals in a share capital agreement
- New Energy has purchased the business for 6.2 million shares, however, cash payments will also be made to VRX for milestone achievements
- Ventnor owns the Biranup nickel and gold project, which is located in Western Australia
- New Energy is aiming to achieve ASX listing and an initial public offering (IPO) later on this year
- VRX is up 9.89 per cent on the market today and is selling shares for 10 cents each
VRX Silica (VRX) has sold its subsidiary, Ventnor Gold, to New Energy Metals in a share capital agreement.
New Energy will issue over 6.2 million shares to VRX for the business. Additionally, VRX will also receive cash payments upon milestone achievements.
Ventnor owns the Biranup nickel and gold project, which is located in Western Australia. The project is in the same area as the 10 million ounces Tropicana Gold Deposit, which is currently being drilled by Legend Mining.
New Energy is a nickel company that is aiming to achieve ASX listing and an initial public offering (IPO) later on this year.
VRX Managing Director Bruce Maluish is pleased with the agreement.
“The Biranup Project tenements have an extensive and comprehensive exploration database that we have assembled and this will be a great starting point for NRG,” he said.
“This is an ideal outcome for VRX Silica and its shareholders as it will allow us to focus on the company’s stated aim of becoming a global supplier of high-quality silica sand,” he added.
VRX has significant silica sand projects in Western Australia and will continue with its aim of becoming a global high-quality silica sand producer.
VRX is up 9.89 per cent on the market today and is selling shares for 10 cents each at 11:44 pm AEST.