- VRX Silica (VRX) signs an offtake term sheet to supply silica sand from its Arrowsmith North Project to foundries in South Korea
- The ASX-lister materials stock signs an agreement with Dong A Heung Eop Mining Co and DongNam Corporation, which supplies products to car-maker Hyundai
- Under the offtake agreement, VRX will supply 200,000 tonnes per annum of AFS55 certified foundry sand for a period of four years to both Dong A and DongNam
- Pricing hasn’t been disclosed, but the company is hopeful today’s agreement will underpin future supplies into the South Korean market
- VRX Silica is trading up 20 per cent at 21 cents each
VRX Silica (VRX) has signed an offtake term sheet to supply silica sand from its Arrowsmith North Project to foundries in South Korea.
The ASX-listed materials stock signed a non-binding agreement with Dong A Heung Eop Mining Co and DongNam Corporation.
Dong A is a leading sand supplier to foundries, while DongNam often supplies resin-coated sand materials and alloy products to car-maker Hyundai.
Under the offtake agreement, VRX will supply 200,000 tonnes per annum of AFS55 certified foundry sand for a period of four years to both Dong A and DongNam.
Pricing hasn’t been disclosed, but VRX is hopeful this initial offtake term sheet will underpin future supplies into the South Korean market.
Managing Director Bruce Maluish said testing had confirmed the suitability of VRX’s product for this particular market.
“The term sheet is a major milestone in the journey to develop our high-quality WA silica sand projects,” Mr Maluish said.
“We are delighted with the calibre of our first offtake partners Dong A and DongNam,
given their significant industry experience and high standing in the foundry industry in South Korea.
“Both companies have shown confidence in the quality of our foundry sand product
from Arrowsmith North and are very keen to convert this term sheet into a secure, long-term supply agreement.”
Shares in VRX Silica have jumped up 20 per cent in morning trade on Wednesday, trading at 21 cents each.