Highlights

• VRX Silica has released its quarterly report and Appendix 5B for the quarter ended 30 September 2026.

• Arrowsmith North is a wholly owned silica sand project about 270 kilometres north of Perth.

• Completion of approvals slipped from the September quarter into the current quarter because regulators requested more information.

• At the Muchea silica sand project, about 50 kilometres north of Perth, a land swap was completed and.

VRX Silica (ASX:VRX) — has released its quarterly report and Appendix 5B for the quarter ended 30 September 2026. The report centres on the Arrowsmith North silica sand project in Western Australia, where the company has completed a land purchase to relocate its proposed processing plant but is still waiting on approvals and has not secured project funding.

Arrowsmith North

Arrowsmith North is a wholly owned silica sand project about 270 kilometres north of Perth. The company reports an Ore Reserve of 221 million tonnes at 99.5 per cent silica, comprising 9.2 million tonnes Proved and 212 million tonnes Probable. Estimated capital cost, from the 2026 Updated Bankable Feasibility Study, is about $74.5 million for a plant processing 2 million tonnes a year.

The company completed the purchase of the roughly 2,091 hectare Arramall farm. The plant will move to this cleared freehold land to reduce disturbance of native vegetation. A 21-year General Purpose Lease was granted to its subsidiary Ventnor Mining Pty Ltd. Amendments for the plant relocation are under review by regulators, and a variation to the referred proposal was accepted by the relevant federal body.

Completion of approvals slipped from the September quarter into the current quarter because regulators requested more information. The company says it does not expect further material delays to its overall schedule, which is a management expectation rather than a regulatory decision.

Funding and offtake

Project funding has not been secured. The company's plan combines equity, debt and potentially pre-paid offtake. No offtake agreement is reported as signed, although the company refers to potential Asian foundry customers following testwork. First production, in the form of early trial shipments, is targeted for early 2028, although the company's boilerplate description elsewhere in the report refers to late 2027.

Cash position

Cash at quarter end was $4.364 million, up from $4.122 million. Net operating cash outflow was $1.205 million and investing outflow was $5.009 million, including $4.857 million on property, plant and equipment. Financing inflow was $6.456 million, made up of $4.548 million from equity and $2.041 million from borrowings. The Appendix 5B estimates a funding runway of 3.22 quarters.

Borrowings include a $2.55 million bridging loan from FarmCap Pty Ltd, fully drawn on 21 August 2026, at 13.5 per cent a year and secured against the Arramall property.

The company also completed strategic placements of about $3.5 million to Nebari and about $1 million to the Delphi group, roughly $4.5 million before costs. After the issues, Nebari holds about 10.46 per cent and Delphi about 13.66 per cent of the company.

Muchea project

At the Muchea silica sand project, about 50 kilometres north of Perth, a land swap was completed and Mining Lease M70/1414 was granted in October 2026, after quarter end. The total Mineral Resource is 208 million tonnes at 99.6 per cent silica. Environmental and mining approval referrals are planned for this and the next quarter, and the 2019 bankable feasibility study is due for an update in 2027.

Governance

Chief executive Tony Swiericzuk started full time on 1 July 2026, and Peter Pawlowitsch is interim chairman.

Risks and next steps

The main conditions are regulatory approvals that are pending and already delayed, project financing that remains to be secured against a capital estimate far above current cash, and the absence of a signed offtake agreement. Confirmed next steps are completion of the Arrowsmith North approvals in the current quarter, Muchea referrals over this and the next quarter, and an updated Muchea study in 2027. Early trial shipments are targeted for early 2028, subject to approvals, funding and construction.