Global material solutions company Sibelco has provided a fresh $4.4 million funding injection for its silica sands joint venture with Diatreme Resources.

Diatreme announced today that Sibelco Silica had exercised its option to acquire additional shares in the pair’s JV company Cape Silica Holdings (CSH).

It said the funding boost was timely, with the completion of the Northern Silica Project feasibility study imminent, and to further assist the progress of Far North Queensland silica sand projects in the face of a global solar energy boom.

The completion of the call option brings to a close the broader transaction first announced to the ASX in April which saw Diatreme subsidiary Metallica Minerals sell its Cape Flattery Silica Project to CSH.

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Diatreme described that transaction as part of a strategy to streamline ownership of its Far North Queensland silica sand assets, enabling project ownership rationalisation and facilitating increased funding and synergies for its flagship Northern Silica Project (NSP).

“We appreciate the strong support shown by our joint venture partner Sibelco to exercise this option and contribute further significant funding of $4.4 million as we progress the NSP through the next stages of feasibility, permitting and approvals,” Diatreme Resources (ASX: DRX) chief executive officer Neil McIntyre said.

“Since launching our transformational partnership in June 2022, European-based Sibelco has been a major supporter of Diatreme and our silica sand projects and this financial backing is another vote of confidence in the future of our Queensland projects from one of the world’s leading industrial minerals suppliers.”

The option exercise announced today takes the total funding received by CSH as part of the transaction to about $7.4 million, before costs and any applicable stamp duty.

It brings respective holdings back to original pre-transaction percentages in the joint venture company of 73.2 per cent Diatreme and 26.8 per cent Sibelco.

Overall, Sibelco has invested about $56 million into Diatreme’s silica sands projects in Far North Queensland and at the corporate level.