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Reward Minerals Ltd (ASX:RWD) will add $2.3 million to its coffers after receiving commitments from sophisticated and professional investors participating in a placement to fund an engineering scoping study for a SOP (potassium sulphate) potash project in Western Australia.
According to the details of the placement – which will be carried out in two tranches – 38.37 million new shares will be issued at 6 cents each, together with one free attaching option (exercisable at $0.12 and expiring two years from the date of issue) for every two shares subscribed for.
In addition to initiatives connected to the scoping study – which will utilise Reward’s processing technologies and components from the Beyondie Potash Plant – the funds will facilitate Reward’s engagement with companies engaged in solar salt, fertilizer and seawater desalination.
The latter conversations will focus on the use of Reward’s technology and future SOP developments, with a view to potential joint venture arrangements and investment.
Reward CEO Lorry Hughes said investor interest in capital raising for these projects was pleasing.
“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,” he said.
“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.”
He added Reward was expecting a notably reduced capital cost for project development, based on the Beyondie acquisition.
Reward shares rose on the news, and at 14:20 AEDT, they were trading at 6.1 cents – a rise of 5.17% since the Australian markets opened.
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