Suvo Strategic Minerals Ltd (ASX:SUV) has wrapped up the purchase of Muchea Silica Sand Project in Western Australia after completion of the tenement purchase of exploration licence application E70/4981.
Previously known as the White Hill Silica Sand Project, the 16 blocks cover 4,700 hectares of land just 50 kilometres north of Perth and are highly prospective for high-purity silica sand.
Muchea will allow Suvo to target different end-user markets to the company’s existing portfolio of assets.
Transaction terms
Suvo has agreed to issue or grant 4% of the proceeds from Muchea’s gross sales to vendor Aaron Banks, who is also the company’s executive director, for the acquisition.
The company will also issue up to $1.55 million worth of shares in tranches to Banks, subject to the granting of a mining licence and a mining permit.
The rights to the shares will lapse if they are not issued by October 21, 2027.
About Suvo
Suvo is focused on production and expansion of the company’s 100% owned Pittong hydrous kaolin operation 40 kilometres west of Ballarat in Victoria.
It also wholly owns the Gabbin Kaolin Project and the Eneabba Silica Sands Project in Western Australia.
The Muchea Project shares the western boundary with VRX Silica Ltd (ASX:VRX)’s Muchea project and is next to the Brand Highway, which offers existing rail cart logistics and a direct access to the Kwinana bulk terminal.