Despite an exhaustive effort Reward Minerals Ltd has been unable to secure sufficient funding to complete the acquisition of the Beyondie Sulphate of Potash (SOP) Project while leaving adequate working capital available.
The company has, therefore, entered into a deed of termination with Kalium Lakes Ltd and the receivers terminating the Share Sale Agreement.
Reward, Kalium and the receivers have agreed to a mutual release of their respective obligations under this agreement (save for confidentiality obligations).
To advance technology
Reward now intends to continue advancing its processing technology toward commercialisation whilst conducting due diligence activities on new projects within the minerals sector for potential acquisition.
CEO Lorry Hughes said: "We weren't able to secure funding to complete the deal. We were clearly up against it due to a majority of potential investors wary of the recent failures within the SOP sector.
"We did receive some very good support from a number of investors that recognise the potential of our technology to transform the SOP business, however, it was not enough and not available within the timeframe required.”
Reward Process
Reward is the 100% owner and developer of the Reward Process, which represents new processing technology for recovery of high-purity SOP from seawater and other high sulphate brines.
Hughes said that during Reward’s due diligence studies over the last six months, it was able to complete a number of laboratory tests on Beyondie brine using its technology “and the results were strongly favourable that an alternative processing method would work at the site.
"Whilst the current result is disappointing Reward remains interested in the potential of the site,” he added.
Next steps
During the next two quarters, the company will focus on the following:
- Conducting due diligence activities on new projects within the minerals sector for potential acquisition.
- Engagement with solar salt, fertilizer, chemical and seawater desalination companies worldwide to discuss the application of Reward’s technology to potential and proposed SOP developments for possible joint venture participation or acquisitions.