Reward raises $5m for potash project

The Michael Ruane-led minerals explorer Reward Minerals has received firm commitments for a $5.2 million capital raising to fund ongoing work at its LD potash project in the Little Sandy Desert.

The funds were raised through the placement of about 7.3 million shares to institutional and sophisticated investors at 72 cents each, representing a 9.1 per cent discount to the company’s five-day volume-weighted average price.

“The company firmly believes that it is developing a world-class potash deposit at LD, a view which is shared by the investors who have taken part in this capital raising,” Mr Ruane said.

He said Reward was in a strong financial position to accelerate its activities.

“(They) include resource expansion drilling on the lake, conducting substantial brine flow and recovery testing which will form the basis of a detailed hydrogeological model, and completion of a feasibility study for the LD project,” Mr Ruane said.

Euroz Securities acted as lead manager to the placement, while BW Equities acted as co-manager.

Reward shares were unchanged at 80 cents each at 9:30am.