Reward Minerals to buy Beyondie SOP Project for A$20 million
PERTH, AUSTRALIA: Reward Minerals Limited (ASX: RIND), a potash exploration and development company, has announced that it has entered into a binding agreement to acquire the Beyondie Sulphate of Potash (SOP) Project from the receivers of Kalium Lakes Limited.
The Beyondie Project is a high-grade SOP project located in Western Australia, with a projected annual production of 90,000 tonnes of SOP.
The total consideration for the acquisition is A$20 million, which includes a A$250,000 exclusivity payment, a A$14.75 million upfront cash payment, and a A$5 million deferred cash payment by 30 June 2025. Reward will also assume the existing contracts and obligations of the project.
The acquisition is subject to the approval of a deed of company arrangement (DOCA) proposal by the creditors of Kalium Lakes, which Reward has submitted along with the share sale agreement. Reward had previously entered into an exclusivity deed with Kalium Lakes and the receivers on 16 November 2023.
Commenting on the Share Sale Agreement, Reward Executive Director, Dr Michael Ruane said: Reward is pleased to have progressed the potential acquisition of the Beyondie SOP project on a debt-free basis. free of encumbrances to the execution of the Share Sale Agreement stage. Assuming that the proposed DOCA with Creditors.
Shareholder Approval and Capital Raising are completed. the Reward team are keen to move quickly on evaluation of the plant and flowsheet modifications and costs for potentially recommissioning the Beyondie Project. The evaluation will also cover the incorporation of the Reward Process into the existing project layout and also for SOP recovery operations at other SOP resource sites.”
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