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Reward Minerals enters trading halt, all eyes on Kalium Lakes’ Beyondie sulphate of potash project

Headshot of Adrian Rauso
Adrian RausoThe West Australian
The shuttered Beyondie sulphate of potash operation is on the market.
Camera IconThe shuttered Beyondie sulphate of potash operation is on the market. Credit: Kalium Lakes Limited/TheWest

Reward Minerals has ducked into a trading halt as indicators point to the fledgling potash player circling over the assets of failed producer Kalium Lakes.

Reward requested a trading halt from the Australian Securities Exchange on Tuesday morning due to a “potential material acquisition”.

Market rumours have been swirling in recent weeks that Reward was scoping out the Beyondie sulphate of potash project in WA’s Little Sandy Desert or Kalium’s other assets.

Reward declined to comment on the potential acquisition.

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Last month Kalium’s receivers — McGrathNicol — said they were running the ruler over potential buyers for its assets, with an outcome likely before mid-December.

The ASX-listed Kalium collapsed in August owing more than $200 million to lenders, including the Federal Government’s Northern Australian Infrastructure Facility.

Receivers fielded a bid from fellow ASX-listed potash play Agrimin seeking to buy the Beyondie project in September, but that $45m deal fell apart.

In October 2021 Kalium produced Australia’s first potash via Beyondie, however the project was plagued with technical issues as Kalium endeavoured to ramp up Beyondie towards its 120,000-tonne per annum nameplate capacity.

Nedlands-based Reward has market capitalisation of around $9m, meaning a debt-funding package or substantive capital raising for its size would be required for an acquisition of Beyondie.

Reward is currently progressing an exploration licence application in the north-west of WA, which if granted will be known as the Carnarvon potash project.

Reward chief executive Lorry Hughes last month touted the company’s new processing technology, termed the ‘Reward Process’.

“The Reward Process does not utilise the prohibitively costly and complicated flotation method for separating potassium salts from magnesium salts which has been a technical and financial failure within the WA SOP industry,” he said.

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