Reward Minerals Ltd (Reward) has announced it has received firm commitments from sophisticated and professional investors to raise US$2.3 million via a strongly supported two-tranche placement.
Reward 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 steppingstone 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.”
The Placement will comprise the issue of 38.37 million new fully paid ordinary shares at an issue price of US$0.06 per share, together with 1 free attaching option (exercisable at US$0.12 and expiring 2 years from the date of issue) for every 2 shares subscribed for.
Funds raised from the placement will be applied to:
- The completion of a new Engineering Scoping Study for a SOP Potash project in W.A. using Reward’s processing technologies and Beyondie Potash Plant components to be acquired by Reward.
- Continue engagement with solar salt, fertilizer and seawater desalination companies worldwide to discuss the application of Reward’s technology and proposed SOP developments for possible joint venture participation and investment.
- general working capital.
The Placement will be completed in two-tranches as follows:
- Tranche 1 raising US$1.7 million (before costs) (28.4 million shares and 14.2 million Free Attaching Options) from unrelated parties pursuant to the Company’s placement capacity under ASX Listing Rules 7.1 and 7.1A.
- Tranche 2 raising US$0.6 million (before costs) (10.0 million shares and 5.0 million Free Attaching Options) from Executive Director, Dr Michael Ruane, subject to shareholder approval pursuant to Listing Rule 10.11 at a General Meeting expected to be held in mid-December 2024 (at the same time as seeking approval for the acquisition of the Beyondie Project assets). The company notes that Dr Ruane’s interest in shares is expected to change from 41.94% (as at 24 October 2024) to 39.65% following completion of the 2nd Tranche of the Placement and Dr Ruane intends to rely on item 9 of section 611 with respect to any change in Dr Ruane’s holding during the period between completion of the 1st Tranche and 2nd Tranche of the Placement.
Shares and Attaching Options under the 1st Tranche of the Placement are anticipated to be issued on 4 November 2024, following lodgement of a prospectus with ASIC for the purposes of satisfying section 708A(11) of the Corporations Act.
New shares and all exercised Attaching Options will rank equally with the company’s existing Shares.
No lead manager was appointed to manage the Placement, however assisting brokers will receive 5% of funds raised by those respective brokers.