After a two-month long campaign to raise funds for the Beyondie sulphate of potash (SOP) project in WA, Reward Minerals has announced the transaction has been terminated.
Reward Minerals said the company has been unable to secure funding to complete the acquisition and have adequate working capital available.
However, Reward is still looking to continue the advancement of its processing technology toward commercialisation while also conducting due diligence activities on new projects within the minerals sector.
The potash explorer entered into an agreement to acquire Beyondie from Kalium Lakes in November 2023. In January 2024, it announced its intention to raise $22.7 million to complete the acquisition.
The push to complete the transaction saw Reward launch a two-for-one renounceable entitlement offer to shareholders at an issue price of $0.05 per share.
“The capital raising will allow completion of the Beyondie transaction and for Reward to proceed to commencement of research and development activities at the site as soon as practicable with a view to development of a robust operational strategy in the near term,” Reward chief executive officer Lorry Hugh said at the time.
In mid-2016, Kalium Lakes raised over $450 million in debt and equity funding to acquire and develop the Beyondie project, and in October 2021 the first SOP production was achieved.
However, numerous operational obstacles resulted in substantial cost over runs and eventually the operations being shut down. In August 2022, the project required a debt restructure.
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