Reward Minerals has begun a campaign to raise $22.7 million to complete its acquisition of the Beyondie sulphate of potash (SOP) project in Western Australia.
The potash explorer entered into an agreement to acquire Beyondie from Kalium Lakes in November 2023.
Reward shareholders voted to approve the acquisition this week, prompting action from the company to drum up the funds to see the transaction through.
The push to complete the transaction has seen Reward launch a two-for-one renounceable entitlement offer to shareholders at an issue price of $0.05 per share.
With every two new shares subscribed shareholders will receive one free attaching option, which will have an exercise price of $0.10.
The company has confirmed that all Reward directors and its chief executive officer, Lorry Hughs, intend to participate in the offer.
“Following yesterday’s approval by shareholders for the company’s acquisition of the Beyondie SOP project we are pleased to provide this notice of a renounceable entitlement offer related to funding of the acquisition,” Hughs said.
“The capital raising will allow completion of the Beyondie transaction and for Reward to proceed to commencement of research and development activities at the site as soon as practicable with a view to development of a robust operational strategy in the near term.”
The entitlement offer is partially underwritten for $16 million by RM Corporate Finance and conditional on the entire $22.7 million target being raised.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.