Reward Minerals (ASX: RWD) expands into Canadian copper with Copper Lance acquisition targeting underexplored VMS terrain

Reward Minerals Limited (ASX: RWD) has entered into a binding agreement to acquire 100 percent of the Copper Lance Project located in western Newfoundland, Canada, as the Australian developer seeks to diversify beyond its core sulphate of potash portfolio. The acquisition gives Reward Minerals access to a 71.7 square kilometre claim block within one of the world’s most prospective volcanic-hosted base metal belts. With over 40 known base and precious metal occurrences in the region, the Copper Lance asset positions Reward Minerals within the central Dunnage Zone, a prolific and mining-friendly corridor with geological links to world-class VMS deposits including the Ming copper-gold mine operated by Firefly Metals Limited.

The Copper Lance Project sits just 43 kilometres from the regional service hub of Deer Lake, which has an international airport, and is accessible via road. The region has a long operating season and is adjacent to the Notre Dame and Dashwoods subzones, known to host mineralised sequences similar to those found at Firefly Metals Limited’s deposit. Reward Minerals plans to immediately begin soil sampling and field validation programs aimed at prioritising drill targets in early 2026.

Why does Copper Lance hold strategic value in a shifting copper exploration landscape?

Reward Minerals has identified the Copper Lance site as a rare, underexplored opportunity in a Tier 1 mining jurisdiction, with geological features consistent with known volcanogenic massive sulphide systems. Historic rock chip assays have returned copper grades as high as 42 percent and silver grades up to 4.05 ounces per tonne. These samples, which include massive bornite and chalcopyrite-rich vein material, were collected by prospector Erich Kausch in 1980 and later verified by Noranda Exploration Company. The same rock types are associated with the high-grade mineralisation at Buchans and Ming, both located within the broader Baie Verte-Springdale Peninsula corridor.

According to Reward Minerals, the project is underlain by a thick sequence of intermediate to mafic volcanics and intrusive rocks interpreted as part of a rift-basinal oceanic affinity. These rock units, part of the Silurian–Devonian Glover Group, are key indicators of fertile ground for VMS-style mineralisation. Alteration assemblages such as silicification, magnetite, and sericite further support the hypothesis of Kuroko-type mineralisation, which is globally recognised for its high metal content and economic significance.

Geological data compiled from historic exploration suggest the presence of sulphide-rich feeder systems, and airborne electromagnetic surveys conducted by Aspect Canada in 2009 to 2010 revealed multiple untested conductor anomalies trending northeast–southwest. These electromagnetic conductors will be a key focus for Reward Minerals’ first-phase exploration.

What are the terms of the Copper Lance acquisition and associated royalties?

The transaction was executed with Northex Capital Partners, with Reward Minerals acquiring six mineral depositions and two additional claims that were staked using Reward funds. The initial consideration includes AUD 20,000 in cash, which has already been paid, and the issuance of two million fully paid ordinary shares in Reward Minerals Limited within two business days of executing the definitive asset purchase agreement.

Northex Capital Partners will retain a one percent net smelter returns royalty across all mineral tenements included in the acquisition. Reward Minerals has the option to repurchase half of that royalty for AUD 750,000 at any time. The parties have agreed to negotiate in good faith and execute a final asset purchase agreement within 30 calendar days from November 6, 2025.

The mineral claims cover a contiguous block of 485 claims, including tenements previously held by Jasper Mowatt, Jordan Vann, and Newfoundland Gold Retriever Corporation. Two additional licences, comprising 393 claims, were staked in November 2025 and will be transferred upon finalisation of the agreement.

How does this acquisition align with Reward Minerals’ broader dual-asset development strategy?

Reward Minerals is best known for its work in sulphate of potash, including the Beyondie Potash Plant located approximately 160 kilometres southeast of Newman, Western Australia. The company is currently exploring multiple options to either relocate the Beyondie facility or reconfigure it as part of a new commercial-scale potash operation. Alongside this core activity, Reward has filed patents for the Reward Process, a proprietary method for extracting high-purity sulphate of potash from seawater and brines.

In recent quarters, Reward Minerals has broadened its focus to include early-stage base and precious metal exploration across Western Australia. With the addition of the Copper Lance Project, the company is moving toward a dual-asset model that could give it exposure to global copper markets while continuing to develop its proprietary fertiliser technology.

The company has indicated that over the next two quarters, it will prioritise data compilation for the Copper Lance Project, initiate a comprehensive soil and rock chip program, and begin generating high-confidence drill targets. Additional corporate efforts will include advancing the Reward Process toward commercialisation and identifying new joint venture or investment partners in the solar salt and fertiliser sectors.

What historical exploration results support the project’s mineral potential?

Exploration history at the Copper Lance site stretches back to the 1960s, with sporadic work carried out by Noranda Exploration Company, Westfield Minerals Limited, Altius Minerals, and others. The most notable assays came from Erich Kausch’s 1980 rock chip samples, which returned 42 percent copper and 4.05 ounces per tonne of silver from a massive bornite vein. A separate sample returned 22.4 percent copper and 0.39 ounces per tonne of silver from chalcopyrite-rich material.

Westfield Minerals Limited also reported 0.45 grams per tonne gold from a separate sample that contained 0.43 percent copper. One historical diamond drill hole in the southern area of the property intersected 0.16 percent copper in the top 25 metres, suggesting shallow mineralisation may be present.

While these historical data sets are not compliant with modern JORC standards, they serve as a compelling basis for field follow-up and drill targeting. Reward Minerals plans to verify these anomalies and prioritise electromagnetic conductor zones previously mapped by Aspect Canada.

What does institutional sentiment and copper market context suggest?

Investor sentiment toward copper remains structurally bullish as electrification and grid expansion continue to drive long-term demand, particularly for high-grade, jurisdictionally stable deposits. While Reward Minerals remains a junior developer with modest market capitalisation, its strategic expansion into base metals aligns with broader institutional interest in critical mineral supply chains.

Analysts watching the VMS space note that high-grade surface showings, even from historic campaigns, can be reliable indicators of deeper, more continuous mineral systems. The Copper Lance Project, situated within 30 kilometres of the historic Buchans mining area and 115 kilometres from the Ming Mine, fits the profile of high-potential targets in underexplored segments of known mineral belts.

Should the upcoming soil sampling program validate previous rock chip anomalies and outline drillable electromagnetic conductors, Reward Minerals could find itself on the radar of resource-focused institutional investors and strategic partners looking for early-stage exposure to copper and precious metals.

What are the key takeaways from Reward Minerals’ Copper Lance acquisition?

• Reward Minerals Limited has acquired 100 percent of the Copper Lance Project in western Newfoundland, Canada, through a binding Letter of Intent with Northex Capital Partners.
• The project spans approximately 71.7 square kilometres with 485 contiguous mineral claims located within the prolific Dunnage Zone, home to several VMS-style base and precious metal deposits.
• Copper Lance lies 43 kilometres from Deer Lake and around 115 kilometres southwest of Firefly Metals Limited’s Ming copper-gold mine, with which it shares geological similarities.
• Historic rock chip assays reported exceptionally high copper grades, including 42 percent copper and 4.05 oz/t silver, suggesting the presence of bornite and chalcopyrite-rich feeder systems.
• Additional airborne electromagnetic surveys have identified untested conductor anomalies that will be prioritized during upcoming fieldwork beginning in November 2025.
• The acquisition includes a AUD 20,000 cash payment and the issue of two million Reward Minerals shares. Northex Capital Partners will retain a one percent NSR royalty, with Reward holding a buy-back right for half of it at AUD 750,000.
• The Copper Lance expansion supports Reward Minerals’ broader dual-asset strategy by diversifying into high-grade copper and precious metals exploration while advancing its sulphate of potash initiatives.
• Over the next two quarters, Reward plans to complete a comprehensive soil and rock chip sampling program to generate high-priority drill targets for the 2026 field season.
• Institutional sentiment around copper remains strong, with the market favoring projects in stable jurisdictions with high-grade historic indicators and infrastructure access.
• This move positions Reward Minerals for potential re-rating as it bridges its intellectual property-led SOP business with critical minerals exploration in Canada’s VMS heartland.