Promising WA potash project gets a second shot at life

Reward Minerals is raising funds for the acquisition of a potash producing project in Western Australia with a life of mine between 30 and 50 years.

Reward’s shareholders approved the purchase of the Beyondie sulphate of potash (SOP) project this week, with the company now launching a $22.7 million cash raise to fund the acquisition.

Before previous owner Kalium Lakes collapsed into administration, Beyondie seemed a promising project. Kalium Lakes had secured an off-take agreement with German fertilizer company K+S for 90,000 tonnes per annum of SOP from Beyondie for ten years.

It was aiming to deliver a maximum throughput of 120,000 tonnes per annum of SOP with a life of mine between 30 to 50 years.

Unfortunately, the company was dogged by financial troubles throughout Beyondie’s life. Industry analysts said the company had difficulties perfecting the technical aspects of producing a saleable potash product.

Now Reward Minerals, a more advanced producer of potash, stands a good chance of seeing Beyondie’s potential realised.

Reward’s cash raise is comprised of 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.

Since the entitlement offer is renounceable, shareholders can trade their rights from January 10, and apply to take up additional new shares from any shortfall.

The company has confirmed that all Reward directors and its chief executive officer, Lorry Hughs, intend to participate in the offer.