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VRX Silica to form strategic alliance with China Southern Glass, shares up 30%

An MoU has been entered with CSG Holding Co Ltd (China Southern Glass), the largest architectural glass manufacturer in China.

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The Chinese glassmaking industry is the most dominant in the Asia-Pacific region

VRX Silica Ltd (ASX:VRX) has entered into a memorandum of understanding (MoU) with China Southern Glass or form a strategic alliance related to the Muchea Silica Sand Project near Perth, WA.

The objectives of the strategic alliance include exploring the potential for marketing, promotion and sale in China of silica sand products from Muchea, and potential sources of capital finance for the construction of production facilities at Muchea.

In addition, the parties will consider potential for the development of a high-quality glass manufacturing facility in Western Australia.

Shares are trading up 30% on the day last priced at 15 cents. 

READ: VRX Silica has four-fold increase in silica sand resource at Arrowsmith North, shares up

VRX’s managing director Bruce Maluish said: “The Chinese glassmaking industry is the most dominant in the Asia-Pacific region and China Southern Glass is the largest architectural glass manufacturer in China.

“This strategic alliance further highlights the potential for a significant, World-class silica sand mining operation at Muchea and supports our assessment of increasing silica sand supply constraints in the Asia-Pacific region.

“We are excited by the prospect of working with China Southern Glass and exploring opportunities in the Chinese silica sand market.”

JORC resource expected to increase

The silica sand JORC resource identified at both the company’s Arrowsmith Silica Sand Project and its Muchea Project is significant and it is expected to increase.

VRX is capable of producing large quantities of silica sand from each project to satisfy demand from interested parties.

Quick facts: VRX Silica Ltd

Price: 0.125 AUD

ASX:VRX
Market: ASX
Market Cap: $55.64 m
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