European investment in Diatreme

Exploration at the Galalar Project. Image: Diatreme Resources

Silica sands developer and explorer Diatreme Resources has partnered with globally-based, European-headquartered material solutions company SCR-Sibelco N.V. to progress the development of the emerging silica sand projects in Far North Queensland.

Sibelco has become a major shareholder in Diatreme through the placement of 559,465,000 new ordinary shares at a combined issue price of 2.5 cents per share, raising a total of $13.97 million.

Diatreme has also agreed the binding terms of a placement to existing major shareholder Ilwella of 132,111,500 new ordinary shares at 2.5 cents per share to raise a further $3.3 million, resulting in a total capital raise of $17.27 million (before costs).

In addition, Sibelco and Diatreme have agreed a joint venture to develop Diatreme’s emerging Galalar Silica Project and Northern Resource Project in Queensland, supported by an investment from Sibelco of $35 million, split into two tranches of $11 million and $24 million respectively.

Diatreme chief executive officer Neil McIntyre said Sibelco’s investment into Diatreme at both the corporate and silica projects portfolio level was a vote of confidence in the company, the strategy to date and the inherent quality of its high-grade, world class silica sand projects.

“Having access to Sibelco’s world-leading technical, processing and marketing expertise is a step change for Diatreme that propels us onto the global stage, enhancing the successful development of our projects,” he said.

“Sibelco is the perfect partner for us to unlock the value of our world-class silica sand deposits for the benefit of both companies and all our stakeholders, including our First Nations partners and other local communities.

“Having grown our silica sand resource base to around 200 million tonnes and with room for further expansion, we are now perfectly placed with Sibelco’s support to secure a leading position in the fast-growing global high quality silica sands industry and assist in powering Asia’s solar energy revolution.”

Sibelco chief executive officer Hilmar Rode said the company would benefit from Diatreme’s strong local presence and relationships while sharing its expertise in the silica sand business, based on 150 years of international experience.

Diatreme’s flagship project is the Cyclone Zircon Project in Western Australia’s Eucla Basin, considered one of the region’s largest undeveloped zircon projects.

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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