Reward Minerals Announces Successful First Tranche Placement
REWARD MINERALS LTD (RWD) Share Update November 2024 Tuesday 5th
Reward Minerals Raises $1.652 Million in First Tranche of Placement
Reward Minerals Limited (ASX: RWD) has successfully raised $1.652 million through the issuance of over 27 million shares in the first tranche of its placement.
Instant Summary:
- 27,536,428 fully paid ordinary shares issued at $0.06 each.
- Raised $1.652 million before costs from the first tranche.
- Placement includes 1 free attaching option per share, exercisable at $0.12.
- Tranche 2 aims to raise an additional $0.6 million pending shareholder approval.
- Proposed acquisition of Beyondie Potash Plant to be discussed in December meeting.
Placement Details
Reward Minerals Limited has announced the successful completion of the majority of the first tranche of its placement, raising $1.652 million before costs. The company issued 27,536,428 fully paid ordinary shares at an offer price of $0.06 per share. Each share comes with one free attaching option, exercisable at $0.12 and expiring on 5 November 2026.
The remaining portion of Tranche 1, consisting of 830,004 shares valued at $49,800, is expected to be issued by 7 November 2024. The securities were issued under the company's available placement capacity according to ASX Listing Rule 7.1 and 7.1A.
Tranche 2 and Beyondie Potash Plant Acquisition
Tranche 2 of the placement is set to raise an additional $0.6 million, involving the issuance of 10 million shares and 5 million free attaching options under the same terms. This tranche is contingent upon shareholder approval, which will be sought at a General Meeting in mid-December 2024. This meeting will also address the proposed acquisition of the Beyondie Potash Plant.
Independent experts have been engaged to assess the fairness of the acquisition for shareholders, with their report nearing completion. The company anticipates that the General Meeting will provide further clarity on these strategic initiatives.
The successful completion of the first tranche of the placement is a positive step for Reward Minerals, providing essential capital for its ongoing projects. The issuance of shares and options is likely to support the company's financial stability and potential growth. However, the pending shareholder approval for Tranche 2 and the Beyondie Potash Plant acquisition introduces an element of uncertainty that could influence investor sentiment.
Investor Reaction:
Analysts are likely to view the successful raising of funds as a positive development for Reward Minerals. However, the outcome of the shareholder meeting in December will be crucial in determining the company's future direction and investor confidence.
Conclusion:
Investors should keep an eye on the upcoming General Meeting in December, which will be pivotal in shaping Reward Minerals' strategic path. The company's ability to secure shareholder approval for Tranche 2 and the Beyondie Potash Plant acquisition will be key factors to watch.