“Securing such a large piece of land that offers high-quality silica sand for such a minimal initial investment is a significant outcome for our shareholders and strengthens our already impressive silica sand assets,” said the Chairman.
Suvo Strategic Minerals Ltd (ASX:SUV) has decided to expand its already massive silica sand assets with the proposed acquisition of the high-grade White Hill silica sand project, constituting some 4,700 hectares in the Muchea region of Australia western.
Located just 50 kilometers north of Perth, White Hill will offer Suvo the potential to explore high quality silica sand, targeting different end-user markets for the company’s existing asset portfolio.
License application labeled E70/4981, White Hill shares a western boundary with VRX Silica’s Muchea silica sand project.
Potential lithium-ion product stream
Executive Chairman of Suvo Strategic Minerals, Robert Martin, said, “Securing such a large piece of land suitable for the production of high-quality silica sand for such a minimal initial investment is a significant outcome for our shareholders and strengthens our already impressive assets in silica sand.
“Our neighbors to the east have reported significant high quality grades on large volumes and we believe the dune system that is producing this continues in this building.
“We are excited to move this project forward and test its potential to deliver a suitable material to meet the stringent requirements for high-end materials, including specialty glass inputs for solar panels and cell phones, as well as the high capacity lithium-ion (Li-ion or LIB) rechargeable batteries.
White Hill is strategically located next to the Brand Highway, with rail cart logistics already in place and direct access to the Kwinana Bulk Terminal.
silica sands market
Silica sands are mainly used for the manufacture of glass, foundry materials, solar panels, ceramics, chemicals, paints and coatings.
These industries in the Asia-Pacific region are growing rapidly, especially in developing economies, with a focus on infrastructure development.
Asia-Pacific silica sand market was valued at US$5.3 billion in 2019 and is projected to reach US$8.3 billion by 2027. The demand for silica sand is rapidly increasing in line with the growth of the glass materials industry.
Acquisition key terms
In consideration for the occupancy request, subject to the satisfaction of the conditions precedent, Suvo intends to issue or grant (as the case may be) the following consideration to the seller:
a) Closing Consideration: 333,334 unlisted options to acquire one fully paid common share in the capital of SUV at an exercise price of $0.15 per share no later than three years from the date of issue;
b) Royalty: 4% of the gross sales proceeds of the product derived from Tenement’s application;
(c) Deferred Consideration Shares: Subject to shareholder approval and compliance with the following development milestones, issue to the Seller up to $1,550,000 in shares (Deferred Shares), in the following tranches:
I. Granting of the Exploitation Permit: During the granting of an exploitation permit on any zone covered by the Exploration Permit. The number of shares calculated by dividing $1,150,000 by the higher of the 5-day VWAP; and $0.15.
ii. Grant of Mining Permit: Upon granting all necessary mining permits on any area that is the subject of the concession application required to commence production on a concession (including environmental permits, water permits , project management plans, and mine closure plans), the number of shares calculated by dividing $400,000 by the greater of the 5-day VWAP; and – $0.15.
Deferred Shares must be issued within five years of the date of applicable shareholder approval (if any) or the rights to the Deferred Shares will lapse.
About Suvo Strategic Minerals
Suvo Strategic Minerals is an Australian dual product mining company focused on the development of its 100% owned White Knight Kaolin project in the Yilgarn craton in the central wheat belt and its 100% owned Nova Silica project in the Gin Gin Scarp near Eneabba Township, all in Western Australia.
Suvo catapulted itself to producer status when it acquired Pittong Kaolin’s operations in Victoria from a subsidiary of Imerys, becoming the country’s only hydrous kaolin producer.