Rogue Resources Inc. executed two nonbinding letters of intent with companies to negotiate comprehensive agreements over the company's Silicon Ridge project in Quebec, it said Dec. 22.
The two potential off-takers PCC BakkiSilicon hf and Thorsil ehf are planning to develop processing facilities in Iceland to produce metallurgical grade silicon. The company noted that each tonne of metallurgical grade silicon requires between 2.8 tonnes and 3 tonnes of high quality silica.
Rogue President and CEO Sean Samson said the company intends to talk with other buyers of quartz, including ferrosilicon and silicon metal producers, for further letters of intent and/or potential definitive offtake agreements for its silica product.
A preliminary economic assessment for Rogue's Silicon Ridge project defined the project as a near-term and low-CapEx production asset, with preproduction capital estimated at C$13.1 million.
The company has arranged a private placement of units at 50 Canadian cents each to raise up to C$330,000. Each unit consists of 1 common share and 1 non-transferable share purchase warrant, which is exercisable for an additional share at C$1 until Dec. 22, 2018.
Proceeds will be used mainly on the company's Silicon Ridge project and for general working capital purposes.