Reward Minerals (ASX:RWD) is looking to raise almost $23 million via a two for one pro-rata renounceable entitlement offer of shares to eligible shareholders.
The $12.75 million market capitalisation company says shares will be issued at $0.05 per share.
The entitlement offer is partially underwritten to the tune of $16 million by lead manager RM Corporate Finance.
Speaking to Mining.com.au, Chief Executive Officer (CEO) Lorry Hughes says the company is confident in raising the funds and has received a ‘very positive’ response from potential investors. This is in addition to $16 million already underwritten by RM Corporate Finance.
“We have had a very positive response from potential investors so far despite the Australian end of year holiday period.
There are a lot of potential investors we haven’t even spoken to yet due to the holiday period which is still largely in play. We are very pleased about the positive response we have received from the general market so far.”
Reward reports funds raised will be used to complete the acquisition of the Beyondie SOP Project in Western Australia.
The project sits 160km southeast of the township of Newman and comprises an ‘extensive’ tenement package of 1,800km-square.
The company notes with every 2 new shares subscribed shareholders will receive 1 free attaching option exercisable at $0.10.
According to Hughes, shareholders can trade their rights from today (10 January) and can apply to take up additional new shares from any shortfall.
Reward notes all of its directors and the CEO intend to participate in full or in part to the entitlement offer, which closes at 5pm (AWST) on 25 January 2024.
Reward Minerals is a sulphate of potash explorer and developer which wholly owns the Kumpupintil Lake Potash Project in Western Australia.
The project has Australia’s largest ‘high-grade’ brine SOP deposit in a region with the highest evaporation rate.
As of 30 September 2023, Reward had $1.905 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Reward Minerals