Reward Minerals Ltd (ASX:RWD) has opened a 2-to-1 renounceable entitlement offer, seeking to raise $22.785 million before costs to support the acquisition of the Beyondie Sulphate of Potash (SOP) Project, which was approved by shareholders at a meeting yesterday.
Offered at $0.05 per share, eligible shareholders will also receive one free attaching option for every two shares subscribed for, exercisable at $0.10 per share and expiring three years from the date of issue.
The entitlement offer is partially underwritten for $16 million by lead manager RM Corporate Finance Pty Ltd.
Funding Beyondie acquisition
“Following yesterday’s approval by shareholders for the company’s acquisition of the Beyondie SOP Project we are pleased to provide this notice of a renounceable entitlement offer related to funding of the acquisition,” Reward Minerals CEO Lorry Hughes said.
“The capital raising will allow completion of the Beyondie transaction and for Reward to proceed to commencement of R & D activities at the site as soon as practicable with a view to development of a robust operational strategy in the near term.”
RWD notes that as the entitlement offer is renounceable, shareholders may trade their rights from January 10, 2024, and take up additional new shares from any shortfall.
Demonstrating their confidence in the company and its strategy, the directors and CEO have also expressed their intention to participate – either in full or in part – in the entitlement offer personally.
The offer is available to all shareholders registered on the record date of Monday, January 15, whose registered address is in Australia or New Zealand.