Reward Minerals Ltd · ASX:RWD
Reward Minerals — Merger or Acquisition (December 2023)
36 slides from Reward Minerals's merger presentation, Dec 12, 2023
Slide 1: Acquisition of the Beyondie SOP Potash Project and Capital Raising
ACQUISITION OF THE BEYONDIE SOP POTASH PROJECT AND CAPITAL RAISING DR MICHAEL RUANE LORRY HUGHES December 2023 PhD (Chemistry) MRACI BSc. (Geology) FAusIMM Perth, Western Australia Executive Director CEO ASX: RWD
Slide 2: Forward Looking Statements and Disclaimer
FORWARD LOOKING STATEMENTS AND DISCLAIMER ASX Code: RWD This document includes forward-looking statements. When used in this approval pursuant to ASX Listing Rule 11.1.2 and successful completion of the document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, Capital Raising and
Slide 3: Section One: Highlights
SECTION One Highlights ASX Code: RWD 3
Slide 4: Beyondie Project Clear Strategic Fit
Section One: Highlights BEYONDIE PROJECT CLEAR STRATEGIC FIT ASX Code: RWD 1 Acquisition 2 Expertise and 3 Substantial 4 Attractive Terms represent Process to Realise SOP Potash SOP Market Excellent Value Value Production Facility outlook ▪ Reward has entered into a binding share sale ▪ Reward is a
Slide 5: Beyondie Project Clear Strategic Fit
Section One: Highlights BEYONDIE PROJECT CLEAR STRATEGIC FIT ASX Code: RWD ✓Reward to utilise its extensive processing experience and proprietary technology. Current Extensive area Current processing plant harvested salt for new to be partly reconfigured ✓Complete Mining Studies and Pilot SOP Potash
Slide 6: Section Two: Proposed Transaction
SECTION Two Proposed transaction 6
Slide 7: Proposed Transaction Summary
Section Two PROPOSED TRANSACTION SUMMARY ASX Code: RWD ▪ Reward has entered into a binding share sale agreement (SSA) with Kalium in relation to the acquisition of 100% of the issued share capital of Kalium Lakes Infrastructure Pty Ltd (KLI) and Kalium Lakes Potash Pty Ltd (KLP), being the operating
Slide 8: Section Three: Capital Raising
SECTION Three Capital raising ASX Code: RWD 8
Slide 9: Capital Raising Overview
Section Three: Capital raising CAPITAL RAISING OVERVIEW ASX Code: RWD ▪ Renounceable entitlement issue (Entitlements Issue or Offer) of fully paid ordinary shares (Shares) to eligible existing shareholders of Reward, Entitlement Issue on the record date, and at Issue Price of $0.05 per Share to rais
Slide 10: Transaction and Capital Raising Timetable
Section Three: Capital raising TRANSACTION AND CAPITAL RAISING TIMETABLE ASX Code: RWD 5 Dec Early Jan transaction Proposed 2023 2023 Formal Shareholder Documentation meeting to approve agreed and Transaction announced Early Jan Late Jan Late Jan Capital raising 2024 2024 2024 Bids due for Capital R
Slide 11: Section Four: Beyondie Project
SECTION Four Beyondie project ASX Code: RWD 11
Slide 12: Summary
Section Four: Beyondie project SUMMARY ASX Code: RWD ✓Located ~160km SE of Newman, Western Australia, the project was constructed in 2020/2021, produced first SOP Potash in October 2021 and first sales in July 2022. ✓A total of $466 million1 invested into the project and related infrastructure. ✓The
Slide 13: The Project
Section Four: Beyondie project THE PROJECT ASX Code: RWD ✓ Process plant Primary Ponds – Trains 6 & 7 Primary Ponds – Trains 1-5 and 445 Ha of evaporation ponds ✓ Gas pipeline ✓ 7.5 MW gas-fired ROM Pad Product Storage SOP Plant Turkey Nest power station Shed Tailings ✓ Brine & fresh Mobile Mtc wate
Slide 14: SOP Potash Resource
Section Four: Beyondie project SOP POTASH RESOURCE ASX Code: RWD ✓ Extensive tenement package > 1,800km2 ✓ Three granted Mining Leases ✓ Numerous granted Exploration and Miscellaneous Licences 20 km ✓ All plant and infrastructure required for production 14
Slide 15: Infrastructure
Section Four: Beyondie project INFRASTRUCTURE ASX Code: RWD ✓ All infrastructure is reportedly new and is in good working order. ✓ Operations ceased in September 2023 and site transitioned to Care and Maintenance ahead of sale process. ✓ Local unsealed airstrip is operational, with alternative to us
Slide 16: Past missteps
Past missteps ASX Code: RWD What went wrong? ❌ KLL’s brine evaporation operations and Feasibility Studies were designed by credentialed international consultants without operational experience at remote Western Australian sites and lake brine systems. ❌ KLL did not have access to a large portion of
Slide 17: Section Five: Rectify the Situation
SECTION Five Rectify the situation ASX Code: RWD 17
Slide 18: Rectify the Situation
Section Five: Step one RECTIFY THE SITUATION ASX Code: RWD How Reward plans to fix it Complete Proposed ✓Reward Board & management have the expertise (+75 years) to undertake an operation of this Transaction and nature. Capital Raising in ✓Obtain statutory approvals and reconfigure operations with a
Slide 19: Rectify the Situation
Section Five: Step one RECTIFY THE SITUATION ASX Code: RWD Area for new trench and brine bore field ✓ 10 Mile West is a critical project area as it contains Resources close to the plant. Excess Salt stockpile to be used to initially build ✓ 10 Mile West was not inexpensive evaporation available to t
Slide 20: Section Six: Growth Plans
SECTION Six Growth plans ASX Code: RWD 20
Slide 21: Growth Plans
Section Six: Step two GROWTH PLANS ASX Code: RWD Use Reward’s proprietary Reward Process to Unlock Further Value Beyond Beyondie ✓Subject to establishing profitability following the operational and flow sheet enhancements, Reward intends to incorporate the Reward Process at other projects. ✓The Rewa
Slide 22: Growth Plans
Section Six: Step two GROWTH PLANS ASX Code: RWD The Reward Process is suitable for use at these projects in Western Australia Salt Port Lake Macleod Salt (3.1Mtpa) CPP SOP Project (E09/2763) 30 km 22
Slide 23: Section Seven: Reward Minerals
SECTION Seven Reward Minerals ASX Code: RWD 23
Slide 24: Corporate Summary
Section Seven: Reward Minerals CORPORATE SUMMARY ASX Code: RWD Pro-forma Capital Structure Existing Share Register Shares currently on issue m 227.9 1 Shares to be issued in Entitlement Issue m 460.7 Pro-forma shares outstanding m 688.6 Other shareholders Board & Management Pro-forma market cap (at
Slide 25: Board and Management
Section Seven: Reward Minerals BOARD AND MANAGEMENT ASX Code: RWD Board and Management team are ideally placed to realise value from Beyondie, with +75 years experience in the potash and salt industries Colin McCavana Dr. Michael Ruane Rod Della Vedova Lorry Hughes Warren Hinchliffe Chairman PhD (Ch
Slide 26: Appendices
Appendices ASX Code: RWD 26
Slide 27: Proposed Transaction Terms
Appendix A PROPOSED TRANSACTION TERMS ASX Code: RWD ▪ Reward has entered into the Share Sale Agreement (SSA) for the acquisition of 100% of the issued share capital of Kalium Lakes Infrastructure Pty Ltd (KLI) and Kalium Lakes Potash Share Sale Pty Ltd (KLP) (together, the Target Entities), on a deb
Slide 28: The Reward Process
Appendix B THE REWARD PROCESS ASX Code: RWD ▪ A new process technology for the recovery of SOP Potash from solar salt operation bitterns and other high-sulphate brines. ▪ Australian PCT Patent Application Lodged – August 20231. ▪ Engineering Scoping Study completed in September 20232. ▪ Operating Co
Slide 29: The Reward Process
Appendix B THE REWARD PROCESS ASX Code: RWD 9 g/l SOP 21 g/l SOP 24 g/l SOP ✓No mechanical harvesting of Potash Salts. ✓No flotation upgrade required. Redissolved SOP Rich Brine ✓Uses conventional fixed plant components. ✓Significant cost reduction potential. Add Gypsum +50% K to Syngenite ✓Applicab
Slide 30: The Reward Process
Appendix B THE REWARD PROCESS ASX Code: RWD Highly Positive Engineering Scoping Study Results1 Basis Metrics ✓September 20231 - Class 5 Engineering Scoping Study (+/-40%) ✓Reward Technology metrics. completed by Reward with processing engineering inputs completed by Bechtel Australia Pty Ltd. ✓100,0
Slide 31: SOP Potash Sector Cost Curve
Appendix C SOP POTASH SECTOR COST CURVE ASX Code: RWD ~7Mt SOP produced globally each year (brine processing is lowest cost) Sustainable advantage of brine production 50% of producers are loss making at US$410/t Reward Process ESS Operating Cost1 Operating Costs (US$/FOB) Cumulative production (kt)
Slide 32: SOP Potash Prices
Appendix C SOP POTASH PRICES ASX Code: RWD SOP Potash pricing is underpinned by ✓Population growth and global supply constraints. ✓Global transition to sophisticated farming methods. ✓Low-chloride fertilizer demand. ✓Increased usage for higher value crops. Source: Danakali Limited ASX Release dated
Slide 33: KP Lake Potash Project Advantages
Appendix D KP LAKE POTASH PROJECT ASX Code: RWD Advantages ▪ Globally significant SOP Project, located in Little Sandy Desert where there is very high evaporation rates and low rainfall; Detailed, Highest conservative ▪ Insitu SOP Resource 596Mt1 evaporation, PFS Native title Low rainfall secured, I
Slide 34: KP Lake Routes to Port
Appendix D KP LAKE ROUTES TO PORT ASX Code: RWD Route A 840 km via Newman ▪ Sealed ~500 km ▪ Unsealed ~340 km Route B 750 km via Marble Bar ▪ Sealed ~370 km ▪ Unsealed ~380 km Rail infrastructure (Iron ore) 388km from KP Lake, thence 450km to Port Hedland. 34
Slide 35: Compliance Section
COMPLIANCE SECTION ASX Code: RWD Competent Person Statement Australian Institute of Mining and Metallurgy. Mr Hinchliffe is an employee of Reward Minerals Ltd. Mr Hinchliffe has sufficient experience that is relevant to the style of The information in this presentation that relates to the existing K
Slide 36: Thank you
ASX: RWD Thank you Contacts Executive Director CEO Head Office Dr. Michael Ruane Lorry Hughes 159 Stirling Highway PhD (Chemistry) MRACI BSc. (Geology) FAusIMM Nedlands WA 6009 Email: michael.ruane@rewardminerals.com Email: lorry.hughes@rewardminerals.com Postal Address Phone: +61 8 9386 4699 Phone:
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