Reward Minerals Ltd (ASX:RWD) has issued 27,536,428 fully paid ordinary shares at $0.06 per share representing the majority of the first tranche of a $2.3 million two-tranche placement.
The issue raised $1.652 million before costs with the final portion from Tranche 1 comprising 830,004 placement shares for $49,800 expected to be issued on or about Thursday, November 7.
Placement shares include one free attaching option exercisable at $0.12 and expiring on November 5, 2026.
Tranche 1 securities have been issued using the company’s available placement capacity under ASX Listing Rule 7.1 and 7.1A.
Approval needed for Tranche 2
Tranche 2 of the placement of 10 million shares and 5 million free attaching options to raise $600,000 under the same terms and conditions as Tranche 1, from executive director Dr Michael Ruane is subject to shareholder approval at a General Meeting expected to be held in mid-December 2024.
This will be at the same General Meeting at which the company will seek shareholder approval for the proposed acquisition of the Beyondie Potash Plant.
READ: Reward Minerals Ltd snaps up the Beyondie Potash Plant
Report nears completion
Reward has engaged necessary independent experts to provide an opinion on whether the potential acquisition is fair and reasonable to the company’s shareholders. This is for the purposes of satisfying the requirements of ASX Listing Rule 10.5.10.
The independent experts have made rapid progress and the report is nearing completion. The company anticipates holding the General Meeting in mid-December 2024.
Use of funds
Placement funds will go to a new engineering scoping study for a sulphate of potash (SOP) project in Western Australia using RWD’s processing technologies and the Beyondie Potash Plant components to be acquired by Reward.
The company will also continue to engage with solar salt, fertiliser and seawater desalination companies worldwide to explore applications of RWD’s proprietary technology and proposed SOP developments for possible joint venture agreements.
Endorses potential
Reward Minerals CEO Lorry Hughes said: “The strong support for this placement from investors is an endorsement of the potential for the proposed acquisition of the Beyondie Potash Plant and our new processing technology to positively impact the global potassium sulphate (SOP) industry.
“The company believes that the proposed acquisition of the Beyondie Potash Plant is a key stepping-stone for the company to transform into one of the world’s most advanced SOP producers.
“An engineering scoping study for SOP recovery at the Carnarvon Potash Project in September 20231 defined a robust long-life project and now with the Beyondie acquisition potentially in our sights, we envision a significantly reduced capital cost for project development."