Reward Minerals Announces Successful $2.3 Million Capital Raise
RWD (RWD) Share Update October 2024 Wednesday 23rd
Reward Minerals Secures $2.3 Million in New Funding
Reward Minerals Limited (ASX: RWD) has successfully secured $2.3 million in funding through a two-tranche placement, aimed at advancing its potash projects and new processing technology.
Instant Summary:
- Raised $2.3 million through a two-tranche placement.
- Funds to support Beyondie Potash Plant acquisition and project development.
- Tranche 1 raises $1.7 million; Tranche 2 to raise $0.6 million.
- No lead manager appointed; brokers to receive 5% of funds raised.
Funding Details
Reward Minerals Limited has announced that it has received firm commitments from investors to raise $2.3 million before costs. This funding will be conducted through a two-tranche placement, which has been strongly supported by sophisticated and professional investors.
The first tranche of the placement will raise $1.7 million through the issuance of 28.4 million shares and 14.2 million free attaching options. These options will be exercisable at $0.12 and will expire two years from the date of issue. The second tranche aims to raise an additional $0.6 million, subject to shareholder approval, through the issuance of 10 million shares and 5 million free attaching options.
Strategic Use of Funds
The funds raised will be primarily used to complete a new engineering scoping study for a sulphate of potash (SOP) project in Western Australia. This will leverage Reward's processing technologies and components from the Beyondie Potash Plant, which the company plans to acquire. Additionally, Reward will continue its engagement with global solar salt, fertilizer, and seawater desalination companies to explore joint venture opportunities and investment.
Beyondie Potash Plant Acquisition
The acquisition of the Beyondie Potash Plant is seen as a pivotal move for Reward Minerals. The company has engaged independent experts to assess the fairness and reasonableness of the acquisition for shareholders. A general meeting of shareholders is anticipated in mid-December 2024 to seek necessary approvals for the acquisition under ASX Listing Rule 10.1.
This capital raise is a significant step for Reward Minerals as it seeks to advance its position in the global SOP industry. The successful funding round reflects investor confidence in the company's strategic direction and potential for growth. The acquisition of the Beyondie Potash Plant is expected to reduce capital costs and enhance Reward's project development capabilities.
Investor Reaction:
Analysts are likely to view this capital raise positively, as it underscores the company's commitment to expanding its operations and leveraging new technologies. The potential acquisition of the Beyondie Potash Plant is seen as a strategic move that could enhance Reward's market position.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting and the potential acquisition of the Beyondie Potash Plant. Reward Minerals' strategic initiatives and successful capital raise position the company for future growth in the SOP industry.