Reward Minerals acquisition announcement

Reward Minerals Limited (ASX:RWD) has announced its plan to acquire the Beyondie Potash Plant, administration, and operations offices along with minor associated infrastructure for $2.13 million. The acquisition is a strategic move to update the engineering scoping study for its Carnarvon Potash project, aiming to utilize the newly acquired plant components.

Executive commentary on the acquisition

Lorry Hughes, CEO of Reward, expressed the company's delight in the strategic and potentially transformative acquisition. He emphasized the commitment to pursuing opportunities for the recovery of Potassium Sulphate from Western Australian solar salt operations. Hughes highlighted the intention to establish a new facility at a reduced capital cost relative to the previous engineering scoping study. The company aims to utilize its technologies and experience to change the landscape of the SOP industry in Australia.

Summary of the acquisition and outlook

Reward Minerals' acquisition of the Beyondie Potash Plant signifies a significant step towards the commercialization of its processing technology. The company aims to utilize the acquired components to update the engineering scoping study for its Carnarvon Potash project, potentially reducing capital costs. With a focus on producing SOP fertilizer from brine resources, Reward is optimistic about the prospects of successful SOP production on a commercial scale. The acquisition is set to be funded by an extension to the loan facility provided by Director Dr. Michael Ruane. Reward's next steps include obtaining shareholder approval, advancing processing technologies, and engaging with potential joint venture partners. The company's ambitions and goals align with its commitment to transforming the SOP industry in Australia.