Ventnor Resources Ltd (ASX:VRX) has entered into a new agreement to immediately acquire 100% of the Muchea Silica Sand Project 50 kilometres north of Perth, Western Australia.
Notably, the potentially high-grade, high-tonnage silica sand project is near highway and a rail connecting to Kwinana port for bulk handling.
Ventnor originally secured an option to acquire the project in March 2018.
READ: Ventnor Resources sets sight on high-grade silica sand project in Western Australia
Ventnor has also received firm commitments to raise $2.4 million in a share placement to professional and sophisticated investors priced at 6 cents per share.
Significantly, directors of the company have elected to subscribe for $207,000 of the shares, subject to shareholder approval.
Focus on silica sand, builds silica sand portfolio
The Muchea Project will complement the 350 square kilometres held at the Arrowsmith Silica Sand Project, located further north of Perth.
READ: Ventnor Resources granted additional tenement prospective for silica sand
Ventnor has identified attractive supply-demand market forces for sand used in glass, concrete and tech metal.
Prior mining activities such as river dredging have caused environmental damage and coastal mining operations are becoming more difficult due to residential development and conservation.
Test work to date suggests that both the Muchea and Arrowsmith projects are highly prospective and of potentially significant scale and grade.
Exploration Target estimated for Muchea
Two separate conceptual Exploration Targets have been estimated for two areas within the Muchea Project.
37 aircore holes produced a 70 to 125 million tonne silica sand target grading 98% to 99.5% silica.
40 auger holes and 10 aircore holes produced a 100 to 150 million tonne silica sand target grading 98% to 99.5% silica.
Shares and options to be issued for acquisition
Prior to entering into the acquisition agreement, Ventnor acquired Wisecat, the company acquiring the Muchea Project, in consideration for 8.33 million shares.
10 million shares at a deemed price of 6 cents will be issued to the Muchea Project vendor.
A further 55 million shares at a deemed price of 6 cents and 20 million options exercisable at 10 cents expiring 30 June 2021 will be issued to the project vendor pending shareholder approval.
The shareholder meeting aims to be held on 10 September 2018.