Sibelco in $24m vote of confidence for silica plans

Sibelco has demonstrated a vote of confidence in Diatreme Resources' silica sand mining plans with the early payment of $24 million as part of a joint venture deal. Sibelco’s second tranche investment was priced at a 'look-through' value of $160 million for the Cape York projects, with Diatreme currently advancing its flagship Northern Silica Project (NSP) towards development. "Sibelco has shown an extraordinary degree of confidence in the joint venture through this early payment of the second tranche, which provides a significant financial boost that will help to further advance the projects’ development," Diatreme chief executive officer Neil McIntyre said. "Importantly, this investment also shows Sibelco’s confidence in Diatreme’s management and ability to deliver these world-class, high-purity silica sand projects amid rising global demand for high-purity silica from the solar energy boom. Diatreme Resources chief executive officer Neil McIntyre. "We can now move forward with even greater conviction, backed by an extraordinarily long funding runway, through the important next steps of permitting and regulatory approvals to eventual mining of this key critical mineral.” A recent scoping study for the Northern Silica Project at Cape Flattery showed the potential for a valuable mining operation with a potential production rate of 5 million tonnes per annum capable of being sustained for 25 years. And the State Government’s recent “Queensland Critical Minerals Strategy” highlights the potential for the creation of a silica critical minerals hub around the Cape Flattery area to fast-track development of a mineral vital to the solar power industry. The $24 million investment from Sibelco into the joint venture company with Diatreme, Cape Silica Holdings, has been completed well ahead of the scheduled December 1 payment date. It results in Sibelco increasing its joint venture interest by 16.8 per cent to 26.8 per cent (following a first tranche investment of $11 million." Announced in June 2022, Diatreme’s strategic partnership with Sibelco also included a $13.97 million corporate strategic placement, which saw Sibelco become a significant shareholder in Diatreme. Sibelco chief strategy and business development officer Ian Sedgman said the company was pleased with the joint venture’s progress in advancing the development of the world-class silica sand projects on Cape York. “Our early payment highlights our support for the joint venture and confidence that it will deliver this key resource, which the world’s speciality glass market desperately needs at a time of rapid solar PV growth and accelerating global decarbonisation,” he said.

Sibelco in $24m vote of confidence for silica plans

Industry Queensland

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