Reward Minerals has struck a deal to buy the potash plant from collapsed miner Kalium Lakes after failing to acquire the whole Beyondie project earlier this year.
Reward Minerals has struck a deal to buy the potash plant from collapsed miner Kalium Lakes after failing to acquire the whole Beyondie project earlier this year.
ASX-listed Reward will pay $2.13 million for the nearby Beyondie potash plant, minor infrastructure and offices from its executive director and major shareholder Michael Ruane, who bought the assets through an auction after Kalium collapsed.
It comes after Reward lobbed an almost $20 million offer to pluck the Beyondie sulphate of potash project out of receivership and administration but failed to drum up the funds needed for the acquisition. Receivers then warned Kalium’s collapse would be imminent.
The significantly cheaper deal excludes the power station, gas or brine supply facilities, evaporation ponds, more than 216-person accommodation camp and other minor assets at the Beyondie project.
Reward's flagship project is its Kumpupintil Lake Potash development east of Newman in the Little Sandy Desert, which is also home to the Beyondie project.
It told the market it hoped to relocate the Beyondie potash plant to an alternative site with an eye to establish a sulphate of potash operation in partnership with an existing salt producer in the region.
If approved, the deal would be funded through a loan facility from Mr Ruane, who has already lent $6.73 million to Reward.
Reward said the potash plant deal would provide an opportunity to progress its “long-held ambition of producing SOP fertiliser from brine resources on a viable commercial basis”.
“The low cost Beyondie purchase will provide an avenue for Reward to conduct definitive pilot studies required for project feasibility studies at a fraction of the cost associated with a new pilot plant facility,” it told the ASX.
“Reward’s directors and management are of the view that potential joint venture partners will see this as an attractive scenario with a greatly reduced risk profile.”
Kalium’s Beyondie project began producing potash in September 2021.
The company was placed into voluntary administration and receivership in August 2023, following a raft of issues ramping up to nameplate capacity which took a toll on its finances.
It hit the wall owing $200 million, with the federal government’s Northern Australia Infrastructure Facility among its creditors.
Potash aspirant Agrimin also made an attempt for the Beyondie project but that deal similarly failed to come to fruition.
