Aspiring potash of sulfate (SOP) producer Reward Minerals Ltd. has ditched a A$22.785 million (approximately $14.9 million at current exchange rates) capital raise that it had planned to use to fund its acquisition of the Beyondie SOP project in Western Australia.
The company on Feb. 16 announced it was withdrawing the Entitlement Offer that it had announced to ASX on Jan 10 (GM Jan. 12, p. 30). In its statement, the company said the Share Sale Agreement (SSA) with McGrathNicol, the receivers and managers of Kalium Lakes (the former owner of the project), “remains on foot” to acquire the Beyondie project.
McGrathNicol said in a Feb. 20 ASX statement it is currently working with Reward Minerals to amend the SSA and Deed of Company Arrangement proposed for the sale. The amendments, it said, are to reflect that completion of the transaction may no longer rely on Reward’s Entitlement Offer. McGrathNicol said it is now expected that the sale transaction will complete by mid-March.
Rewards Minerals and McGrathNicol entered a binding share sale agreement in December last year for Reward to acquire the Beyondie SOP project for a total consideration A$20 million (GM Dec. 8, 2023).
Reward requested a trading halt on the ASX early this month pending the release of an announcement in relation to its proposed acquisition of Beyondie and the associated entitlement offer (GM Feb. 9, p. 32). The trading suspension remains in place.