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Highlights
- Reward Minerals secures first tranche of a $2.3 million placement.
- Funds will support engineering studies for sulphate of potash projects.
- Proposed Beyondie Potash Plant acquisition aims for industry transformation.
Reward Minerals Ltd (ASX:RWD) has progressed significantly in its strategic $2.3 million capital placement by issuing 27,536,428 fully paid ordinary shares priced at $0.06 each, representing the primary component of the first tranche. This tranche has raised approximately $1.652 million before associated costs, with an additional 830,004 placement shares for $49,800 set to be issued on November 7, 2024. This capital initiative, structured in two tranches, is expected to support key developments for the company’s ongoing potash projects.
Each placement share in Tranche 1 includes a free attaching option, exercisable at $0.12, with an expiration date of November 5, 2026. The tranche's securities were issued under ASX Listing Rules 7.1 and 7.1A, leveraging the company’s existing placement capacity.
Approval and Strategic Acquisition at General Meeting
The second tranche, aimed at raising an additional $600,000 through 10 million shares and 5 million attaching options, is scheduled for approval at a General Meeting in mid-December 2024. Tranche 2 involves an allocation to executive director Dr. Michael Ruane, subject to shareholder consent. During the same meeting, Reward Minerals will also seek approval for the proposed acquisition of the Beyondie Potash Plant, an asset that could bolster the company’s position in the global potassium sulphate (SOP) sector.
Expert Review on Acquisition
In preparation for the acquisition, Reward has engaged independent experts to conduct a thorough review of the proposed deal to ensure fairness for shareholders, aligning with ASX Listing Rule 10.5.10 requirements. The report is nearly complete, and Reward anticipates holding the General Meeting in mid-December to finalize the acquisition and fundraising plans.
Fund Allocation and Development Plans
The proceeds from this placement are earmarked for a new engineering scoping study, focusing on a sulphate of potash project in Western Australia. Reward intends to integrate its proprietary processing technology with the Beyondie Potash Plant components. The company also plans to collaborate with solar salt, fertiliser, and seawater desalination companies to explore joint ventures in these areas.
Future Outlook and Industry Transformation
Reward Minerals CEO, Lorry Hughes, highlighted the robust backing for the placement, citing it as a testament to the potential impact of the Beyondie Potash Plant acquisition on the global SOP market. He emphasized that this acquisition could be pivotal in transforming Reward into a leading SOP producer, particularly following a recent engineering study for the Carnarvon Potash Project, which outlined a long-term, cost-effective production framework.
