Reward Minerals Ltd (ASX:RWD) has taken proceeds from its recent non-renounceable pro-rata rights issue to more than $2.6 million after placing all of the shortfall.
Subscriptions from the underwriter and its nominee along with sub-underwriters were valued at $1,906,589 taking the total funds raised from the entitlement offer to $2,604,036.
As a result of the shortfall, there will be 23,832,361 new shares and 11,916,180 new options issued by the company. The options have an exercise price of 20 cents each and an expiry date of March 31, 2025.
There was $697,447 previously raised from the shareholder acceptances and shareholder shortfall applications.
Reward Minerals issued one new share for every six ordinary shares held by eligible shareholders at an issue price of 8 cents per new share, with one free attaching new option for every two new shares issued.
READ: Reward Minerals finalises capital raise to progress technology towards commercialisation
CEO Lorry Hughes said: “It is great to have the capital raising behind us now so the team can concentrate fully on advancing its Reward Process technology toward commercialisation in a number of locations globally.
“On behalf of the board of directors, I would like to thank new and existing shareholders who participated in the capital raising and we look forward to providing further progress updates in the near term.”
The new shares rank equally with existing shares on issue.
About Reward
Reward is an ASX-listed advanced-stage sulphate of potash exploration and development company. Its flagship is the 100%-owned Kumpupintil Lake Potash Project, east of Newman in north-western Western Australia.
The project hosts Australia’s largest high-grade brine SOP deposit in a region with the highest evaporation rate.
READ: Reward Minerals confirms efficacy of new SOP processing technology
RWD is also developing new processing technology for the recovery of potassium sulphate (SOP) from seawater and other high-sulphate brines.
Earlier this month preliminary laboratory work confirmed the efficacy of this technology and the company has now started a follow-up program aimed at optimising reaction times of specific technical stages in order to reliably produce high-grade SOP.