Tempest Minerals (ASX:TEM) has entered a conditional option agreement with privately held Green Steel and Iron (GISA) for the latter to acquire the Remorse Iron deposit in the Yalgoo Project, located in Western Australia.
GISA will be required to complete a capital raise of $500,000 ahead of an initial public offering, as well as securing a site for the facility upon acceptable terms.
Tempest will be entitled to 50% of the Remorse Magnetite Project’s capital, while also receiving options from GISA.
GISA has 90 days to exercise the option after the last of a series of conditions have been satisfied on or before 31 December 2026.
Tempest will be eligible to appoint two members to GISA’s board to hold a shareholding of 20%.
GISA will achieve key outcomes at the project, including progressing Feasibility and other studies next.
Tempest Chairman Brian Moller says this agreement will allow a “rapid progression” of the deposit into potential for the operation to produce domestic iron and steel products.
“We are excited that Tempest shareholders will have exposure to this significant commercialisation opportunity through this agreement,” Moller says.
GISA Director Don Johnston says the deposit appears prospective for pelletising and direct reduction, as the company shifts to “progressing a whole-value chain low emission iron play (HBI export)”.
“With the federal Green Iron Fund application period underway, this excellent development, partnered with FI Joint Venture and others, provides a wonderful opportunity for the Mid West of Western Australia and for Australia as a whole,” Johnston says.
Tempest Minerals is an Australian-based gold, iron ore, zinc, lead, and copper explorer focused on advancing its portfolio of greenfield and brownfield sites.
Write to Maddison Elliott at Mining.com.au
Images: Tempest Minerals
