Tempest Minerals (ASX:TEM) has completed the sale of the Yalgoo Project to Capricorn Metals (ASX:CMM) for $4.5 million, with the potential for further milestone payments upon future discoveries or production.
Under the terms of the agreement, Tempest will retain the rights to the iron tenements, including the Remorse Deposit and Halo Targets.
As previously reported, Capricorn has paid an initial cash deposit of 100,000 and, upon settlement, has paid $400,000 cash and has issued 294,811 shares (equivalent to $4 million) to Tempest. Share value has been calculated with reference to the 5-day volume weighted average price of Capricorn share prior to sale completion.
Capricorn will make additional payments including $750,000 in cash upon the announcement by Capricorn of a JORC compliant mineral resource estimate over 75,000 ounces of gold and $750,000 in cash upon the announcement of a board decision to begin a commercial mining operation on Yalgoo.
Tempest is continuing to explore with its portfolio of projects across Western Australia, including the recent discovery of gold at the Range Project in Mt Magnet.
The company is continuing to work with Green Iron and Steel to progress the Remorse Iron Deposit and create a multi-user vertically integrated iron production hub as well.
Tempest Minerals is an Australian mineral exploration company with a diversified portfolio of projects in western Australia.
Write to Amy Rotman at Mining.com.au
Images: Tempest Minerals
