Shareholders of Reward Minerals Ltd (ASX:RWD) will vote at a General Meeting on Monday, December 16, 2024, to approve the potentially transformative acquisition of the Beyondie Potash Plant in Western Australia.
A Notice of Meeting (NOM) has been lodged for the vote required for the potential $2.13 million acquisition along with approval for executive director Dr Michael Ruane to participate in Tranche 2 of the recent share placement to raise $2.3 million, before costs.
A key component of the NOM is an independent expert report providing an opinion as to whether the proposed transaction is fair and reasonable to Reward shareholders.
The independent expert has determined that in its opinion the transaction is fair and reasonable for shareholders.
Agreement with director
Reward will acquire the plant via an agreement with executive director and major shareholder Dr Michael Ruane, who recently purchased the assets from PVT Sales Pty Ltd, an entity associated with Pickles Auctioneers, which had previously purchased the assets from the receivers of Kalium.
The General Meeting will be held at 10:00am (AWST) on Monday, December 16, 2024, at 54 Kings Park Road, West Perth, WA, 6005.
Components of the Beyondie plant include a fully constructed processing plant, site offices and maintenance infrastructure.
Specific plant components include a KTMS crushing circuit, Kainite conversion circuit, column flotation circuit, liquor cooling heat exchangers, evaporative cooling circuit, product separation centrifuges, sulphate of potash (SOP) recovery and granulation units, RO water plant and a bulk storage shed.
READ: Reward Minerals Ltd snaps up the Beyondie Potash Plant
Potentially transformative
On announcing the potential transaction, Reward CEO Lorry Hughes said: “Reward is delighted to announce this strategic, low-cost and potentially transformative proposed acquisition that reinforces the company’s commitment to pursuing opportunities which exist for recovery of potassium sulphate (potash, SOP or K2SO4) from Western Australian solar salt operations.
“Reward aspires to use its technologies and experience in combination with components of the Beyondie Plant to establish a new facility at significantly reduced capital cost relative to that indicated in Reward’s September 2023 engineering scoping study (ESS) for its Carnarvon Potash Project."
Shareholders have responded positively to news of the independent expert report with Reward shares trading 14.29% higher to $0.088.
Upcoming activities
During the next two quarters, the company will focus on the following activities;
- Undertake the General Meeting to approve the Beyondie transaction and the participation of executive director Dr Michael Ruane in the recent placement.
- Continue advancement of its processing technologies toward commercialisation including application for a new patent for an additional SOP processing method that is demonstrating more promise than the already patented Reward 'Syngenite' Process.
- Commencement of a new engineering scoping study including establishment of the logistical and cost parameters for relocation of the Beyondie Plant to an alternative site.
- Design and statutory approval of initial work programs at the flagship Carnarvon Potash Project, just north of Carnarvon in north-western Western Australia.
- Continue engagement with solar salt, fertilizer, chemical and seawater desalination companies worldwide to discuss the application of Reward’s technology and proposed SOP developments for possible joint venture participation and investment.