Diversified explorer Tempest Minerals (ASX:TEM) has struck a deal with privately held MAC3 to acquire the Five Wheels Base Metal Project in the Earaheedy Basin of Western Australia.
Under the agreement, Tempest — which has a $7.60 market capitalisation — will issue MAC3 $64,000 worth of TEM shares at a price equal to their average daily volume weighted average price (VWAP) for the 10 trading days prior to completion and will make a cash payment of $36,000 upon completing the transaction.
The completion of the deal is subject to Tempest completing legal, financial, environmental, and technical due diligence by 31 July 2023 and obtaining any necessary shareholder, regulatory, or other third-party consents or approvals by 14 August 2023.
Tempest says the deal will be completed 15 business days after these conditions are satisfied. Once the transaction is complete, Tempest reports it will complete a share purchase agreement in late Q3 2023 before it begins exploration.
Five Wheels lies around 146km north of Wiluna in the Warburton Mineral Field of Western Australia and covers 266km-square of ‘highly prospective’ ground laying on the northern edge of the Earaheedy Basin.
The company says the region has been explored for multiple commodities for over 100 years due to its proximity to Wiluna and has been ‘reinvigorated’ this decade since Rumble Resources (ASX:RTR) announced a ‘major’ discovery at its Earaheedy Project on 19 April 2021.
This was followed up on 19 April 2023, when Rumble announced a ‘globally significant’ pit-constrained maiden inferred Mineral Resource Estimate (MRE) of 94 million tonnes @ 3.1% zinc-lead and 4.2g/t silver. Strickland Resources (ASX:STK) announced similarly styled mineralisation at its neighbouring Iroquois Project in 2023.
As Five Wheels lies about 36km north of Rumble and Strickland’s projects, Tempest believes multiple ‘key’ geological sequences have the potential to be mineralised, and the prospectivity is more widespread than originally considered within the basin distal geological area.
This includes the Frere and Yelma formations, which are known to outcrop in the Five Wheels Project area, as well as large regional structures that are known as feeder systems to the mineralisation in the south of the basin.
Tempest Minerals is an Australian base mineral explorer focused on its diversified portfolio of projects in Western Australia that are considered prospective for precious, base, and energy metals.
These assets include the Range Project in the Mount Magnet region, along with the Messenger, Meleya, War West, and Euro Projects in the Yalgoo region and the Rocky Hill Project in the Yilgarn region of Western Australia.
On 31 March 2023, Tempest had $3.294 million cash at hand, according to its latest quarterly report published on 27 April 2023.
Write to Harry Mulholland at Mining.com.au
Images: Tempest Minerals Ltd
