RWD - Reward Minerals

[Simo9]

You'll learn to put all downward trending stocks on a watch list.

Picking bottoms is hard, and you'll have to see signs of a bottom and start of a new trend to jump in.

I am looking to see if it will bounce off its lows in March 2011 (low 60c).

Thanks for the reply Chasero.

What do you mean by bouncing off it's lows in march? Do you mean return to that level or that the trend has been sporadic since then or . . .

 

[Simo9]

Hi all,

Can I get your help interpreting the recent price jump for RWD?

Yesterday it opened at 68c, increased by approx 8% and increased again today to be at 80c. There was an announcement yesterday but it was only about a change of director's interest and I can't see anyone getting excited about it (unless I'm missing something).

After the increase yesterday I checked the course of sales and there was about 9 trades for the day totaling $15,000 - the biggest trade was about $7k. Because of the small number and value of trades I thought that there wasn't much behind the increase. Contrary to my expectation, it went up again today.

Any thoughts on what's driving this? Also, any advice on how to use the course of sale information to get a clearer picture?

Thanks!

 

[Faramir]

I am picking Reward Minerals for July Tipping competition. I want to be rewarded for my intensive efforts in choosing this stock ?
It went up by 40% today. I better find out why?

 

[Faramir]

Here’s an announcement that resulted in today’s share price jump.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02389169-6A1038556?access_token=83ff96335c2d45a094df02a206a39ff4

The title makes me laugh. I want to be rewarded but this project in located in Lake Disappointment. I better not paddle my kayak in this lake ever! I don’t want to be disappointed with my slow paddling.

Major Project Status Awarded to Reward’s Lake Disappointment SOP Project
SOP stands for sulphate of potash

Key Points
The Major Projects Facilitation Agency assessed the Lake Disappointment SOP Project on a standard set of criteria, and to qualify it needed to:

Be of strategic significance to Australia and must either:
• Contribute significantly to economic growth, exports, employment and/or infrastructure development.
• Have an economic benefit to regional Australia, considering a region's investment needs.
Require Commonwealth Government approvals or involvement, for example:
• Foreign Investment approval or import tariff concessions.
• Significant involvement through government employment and training programs, or immigration programs.
Be commercially viable.
“The Lake Disappointment project will strengthen the security of Australia’s agriculture sector and support the Government’s Ag2030 agenda to boost Australia’s agricultural production to $100 billion a year by 2030,” Minister Porter said.

Two Government Ministers backing this project: Christian Porter and Keith Pitt.

I wonder if this is one of those pie-in-the-sky projects or if this is the real deal???

 

[Dona Ferentes]

Another potash spiral, with a thirst for capital.

 

[Dona Ferentes]

And a pivot. So, what have we got? Some hints of surface copper over a wide area, in their potash leases?

JV partner FMG Resources Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd, has received assay results from a maiden drilling program within tenements in the northern part of Reward’s KP Lake Potash Project.

Seven reverse circulation holes for a total of 1,338m were drilled in the December Quarter 2022 to test the stratigraphy to the south of the McKay Dome to determine if a regionally reduced unit exists with the potential to host a sedimentary copper mineral system. The targeted unit was identified by Fortescue using geological, geochemical and geophysical datasets acquired since the joint venture began in 2019.

A total of 764 (one metre interval) samples were dispatched to a Perth laboratory for chemical analyses of a suite of elements to compliment field generated portable XRF analyses of the one metre RC chips. All results have been received and copper mineralisation intercepts above 0.05% Cu (500ppm Cu) lower cut-off are provided....

Reward CEO Lorry Hughes commented:

“Considering the drilling program was first pass and completed at a very broad spacing, it is encouraging for Fortescue to have intersected anomalous copper mineralisation.

"Four of the seven holes completed intersected anomalous to significant
mineralisation. The FJV tenure covers over 480km2 and this is the first drilling for base and precious metals to have been completed within the FJV tenure. There appears to be significant scope for further drilling once all data is collated...

 

[Dona Ferentes]

SoP not SoP.
.
Highlights
➢ Reward Minerals has evaluated a high level business case for the recovery of 100,000 tpa of high-purity Potassium Sulphate from seawater derived brines via Reward’s new processing technology
➢ Information from a recent Engineering Scoping Study conducted by the Company has led Reward to determine that a technically sound and commercially attractive operation could be established utilising rejected brines (“Bitterns”) from typical seawater solar salt operations as exist in North West Western Australia
➢ The Reward Process has been independently assessed as potentially providing a robust and highly effective tail-end process that achieves high SOP recovery at low cost compared to existing technologies.

 

[Dona Ferentes]

4.5c, and in trading halt

pending the release of an announcement in relation to a potential material acquisition

.
I wonder if to survive,they're changing to some resource with upside.

RISK vs REWARD

 

[Dona Ferentes]

I wonder if to survive, they're changing to some resource with upside.

RISK vs REWARD

sticking to their core competency .. but can they turn a dollar?
.
Reward has entered into an exclusivity deed with the Receivers of Kalium Lakes Limited (Administrators appointed) (Receivers and Managers appointed) (ASX: KLL) relating to the potential acquisition of the Beyondie Sulphate of Potash Project, located approximately 160 km SE of Newman, Western Australia.

Highlights
- Reward has entered into an exclusivity deed with Kalium to provide a period of exclusivity during which the parties have agreed that they intend to negotiate in good faith to seek to agree the terms of a sale agreement and any associated documents required to give effect to the sale of the Beyondie Project, in line with key terms set out in a non-binding term sheet.
- Total upfront consideration of $14.75 million cash (plus a final payment of $5 million by 30 June 2025 and an exclusivity payment of $250,000).
- The previous owners of the Beyondie Project are estimated to have spent in excess of $400 million on Mineral Resource/ Reserve definition, development, construction and operations of the only producing SOP mine in Australia, prior to the appointment of Receivers and Managers and Voluntary Administrators on 3 August 2023.
- Significant infrastructure includes;
o Fully constructed and permitted SOP trench and brine field, fresh water bore field, evaporation ponds and processing operations.
o Numerous granted Mining, Miscellaneous Licences and Exploration Tenements covering an area of approximately 1,800 square kilometres.
o 7.5MW Power Station.

 

[Dona Ferentes]

sticking to their core competency .. but can they turn a dollar?.

Mz Marketta seems to think it's a good deal ... up 70 per cent

 

[Dona Ferentes]

Mz Marketta seems to think it's a good deal ... up 70 per cent

and still rising. up 20 per cent ... opened at 10c, as high as 12c this morning

 

[Dona Ferentes]

out of trading halt. .. Just Reward seems capable of making a go of SoP.
.

.
Reward Minerals has entered into a binding share sale agreement with the Receivers and Managers of Kalium Lakes Ltd (ASX: KLL) to acquire the Beyondie Sulphate of Potash Project on a debt-free basis, free of encumbrances for total consideration of A$20 million, comprising a A$250,000 exclusivity payment previously made (see ASX announcement dated 16 Nov 2023), upfront cash consideration of $14.75 million and deferred cash consideration of $5 million by 30 June 2025.

Execution of the Share Sale Agreement and submission of a deed of company arrangement proposal follows the Company’s entry into an exclusivity deed with Kalium and the Receivers, as announced to ASX on 16 Nov 2023, and represents the next step towards Reward acquiring the Beyondie Project.

Commenting on the Share Sale Agreement, Reward Executive Director, Dr Michael Ruane said:
“Reward is pleased to have progressed the potential acquisition of the Beyondie SOP project on a debt-free basis, free of encumbrances to the execution of the Share Sale Agreement stage.

"Assuming that the proposed DOCA with Creditors, Shareholder Approval and Capital Raising are completed, the Reward team are keen to move quickly on evaluation of the plant and flowsheet modifications and costs for potentially recommissioning the Beyondie Project. The evaluation will also cover the incorporation of the Reward Process into the existing project layout and also for SOP recovery operations at other SOP resource sites.”

 

[Dona Ferentes]

A big dilution, to acquire a lot of plant at Beyondie ... will the process work, though?
.
▪ Highly favorable acquisition terms compared to the significant infrastructure being acquired ($466 million sunk investment).
▪ In order to fund the up-front consideration and associated costs with the acquisition, Reward is seeking to raise $22.8 million via an entitlement issue (2 new shares for every 1 held) at an issue price of $0.05 per Share, together with one free attaching option for every two shares subscribed (3 year term , $0.10 exercise price), proposed to be fully underwritten, at a pro-forma enterprise valuation of ~A$28m.

 

[Dona Ferentes]

people are buying on market at 6.0c,

 

[Dona Ferentes]

people are buying on market at 6.0c,

now 5c (and suspended)...

some hesitation in stumping up , perhaps.

Reward requests an extension to the voluntary suspension of its securities and provides the following information in accordance with ASX Listing Rule 17.2:
1. The Company is seeking an extension to the voluntary suspension of its securities pending the release of an announcement in relation to the acquisition of the Beyondie Project.
2. The Company anticipates that the voluntary suspension will remain in place until the earlier of the Company releasing the announcement or the commencement of trading on Monday, 26 February 2024.

 

[Dona Ferentes]

REWARD TO ACQUIRE BEYONDIE POTASH PLANT

Highlights
-Reward to acquire Beyondie Potash Plant, administration and operations offices and minor associated infrastructure for $2.13 million (excluding GST)
-Purchase price is a small fraction of replacement cost
-Reward to update the engineering scoping study for its Carnarvon Potash project assuming use of the newly acquired plant components

last trade at 3.7c

 

[Dona Ferentes]

REWARD TO ACQUIRE BEYONDIE POTASH PLANT

last trade at 3.7c

out of TH and one buy went through at $0.041.

sitting there B 0.040 / S 0.061 .... is there enough interest to be a tip for Oct comp?

 

[Dona Ferentes]

out of TH and one buy went through at $0.041. ....B 0.040 / S 0.061 .... is there enough interest to be a tip for Oct comp?

yes. (butI did not !! grr. ) . the Buy and Sell bids gradually narrowed, with a good kick to get some trades at $0.056., now B 0.057 / S 0.060

 

[Dona Ferentes]

Buy and Sell bids gradually narrowed, with a good kick to get some trades at $0.056., now B 0.057 / S 0.060

and back trading after CR... holding at $0.060
.
Placement
The Placement will comprise the issue of 38.37 million new fully paid ordinary shares at an issue price of $0.06 per Share, together with 1 free attaching option (exercisable at $0.12 and expiring 2 years from the date of issue) for every 2 Shares Subscribed for.
Funds raised from the Placement will be applied to:
- Completion of a new Engineering Scoping Study for a SOP Potash project in W.A. using Reward’s processing technologies and Beyondie Potash Plant components to be acquired by Reward;
- Continue engagement with solar salt, fertilizer and seawater desalination companies worldwide to discuss the application of Reward’s technology and proposed SOP developments for possible joint venture participation and
investment; and
- General working capital.

Reward CEO Lorry Hughes commented:
“The strong support for this Placement from investors is an endorsement of the potential for the proposed acquisition of the Beyondie Potash Plant and our newprocessing technology to positively impact the global Potassium Sulphate industry.
The Company believes that the proposed acquisition of the Beyondie Potash Plant is a key steppingstone for the Company to transform into one of the world’s most advanced SOP producers.
An engineering scoping study for SOP recovery at the Carnarvon Potash Project in September 20231 defined a robust long-life project and now with the Beyondie acquisition potentially in our sights, we envision a significantly reduced capital cost for project development....”