Tempest Minerals (ASX:TEM) has entered a binding agreement to divest its Yalgoo Project in Western Australia to Capricorn Metals (ASX:CMM) for a total consideration of $4.5 million, with milestone payments to follow.
Capricorn will pay an initial cash deposit of $100,000, followed by another $400,000 on completion of the sale, and $4 million through the issue of shares. Share price will be calculated based on the five-day volume weighted average price prior to sale completion.
Milestone payments will be conducted upon Capricorn returning a JORC-compliant resource estimate of more than 75,000 ounces of gold for the project, in which the holder will pay a further $750,000 in cash.
Capricorn will also pay Tempest another $750,000 in cash upon the decision to begin commercial mining operations at the project. Resource payments will come to a total of three payments, payable once per tenement.
Tempest will retain ownership of the eastern tenements at Yalgoo, which recently pinpointed to bear iron mineralisation.
The deal is expected to be completed in early 2026. Meanwhile, Tempest is shifting its exploration focus to the Range Project in Mt Magnet, following up on recent findings of more than 1.5km of strike from drilling; the Five Wheels Project due to its anomalous base metals identified; and the Elephant Project for where geophysical and untested gold anomalies reside. All assets are located in Western Australia.
Capricorn Executive Chairman Mark Clark says the acquisition continues the company’s expansion of the Mt Gibson exploration footprint, while also adding prospective targets proximal to the Golden Range and Fields Find projects.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson Gold Project and the region,” Clark says.
“We look forward to commencing active exploration on the project in 2026.”
Tempest Minerals is a mineral explorer that holds a diversified portfolio of projects in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Tempest Minerals
