Sibelco Silica injects $4.4M into Diatreme Resources JV

• Sibelco Silica has exercised its call option to invest an additional $4.4 million into Cape Silica.
• The transaction brings the total funding received by the joint venture entity to approximately $7.4 million.
• The funding is intended to progress regional silica sand projects ahead of an upcoming feasibility study's completion.

Diatreme Resources (ASX:DRX) announced that its joint venture partner Sibelco Silica has exercised a call option to inject an additional $4.4 million into their shared silica sand business.

This option exercise follows the recently completed sale of the Cape Flattery Silica Project to the joint venture entity, Cape Silica, which was initially announced on June 9.

The fresh capital injection brings total transaction funding received by the joint venture to approximately $7.4 million before costs and applicable stamp duty.

Upon completion of the share issue, Diatreme Resources will maintain its original 73.2% majority interest in the joint venture entity while Sibelco Silica holds the remaining 26.8% stake.

Following the announcement, the Diatreme Resources share price was unchanged at $0.011.

The company stated that the additional funding will be used to assist the ongoing progress of its silica sand projects located in Far North Queensland.

Diatreme Resources also noted that the completion of the Northern Silica Project feasibility study is currently imminent.