Australian mineral explorer Tempest Minerals (ASX:TEM) has elected to terminate its acquisition of US-based private company Lithium of Nevada due to delays in progressing the agreement.
In November 2022, the company advised it had entered into the agreement with Lithium of Nevada, which in turn had entered into a binding agreement with Vancouver-based lithium and gold developer Iconic Minerals (CVE:ICM) for the rights to acquire up to 50% of the Smiths Creek Nevada Lithium Project.
Under the agreement, Tempest’s subsidiary, West Resource Ventures, would have acquired Lithium of Nevada for 27.475 million ordinary shares and 27.475 million performance shares that would have converted to ordinary shares once West Resource Ventures earned a 50% interest in the Smith Creek Project.
Following this acquisition, Tempest intended to seek cornerstone investors to underpin a demerger and initial public offering (IPO) of West Resource Ventures, which holds Tempest’s lithium projects in Western Australia. Despite the termination of the Lithium of Nevada deal, the demerger and IPO plan is still underway.
Despite the termination of the Lithium of Nevada deal, the demerger and IPO plan is still underway
Under the pre-IPO capital raise, West Resource Ventures intends to issue up to10% of the pre-IPO capital to cornerstone investors, including Tempest shareholders. The company says it plans to issue up to 3.5 million convertible notes that will convert into West Resource Ventures shares at $0.10 each to raise $3.5 million.
The company reports as part of the plan, it will rename West Resource Ventures to Electra Minerals.
Tempest considers this to be one of a range of options to enable it to unlock the value of its lithium projects in Western Australia, including the acquisition of other prospective lithium projects to complement the existing portfolio.
This portfolio consists of the Rocky Hill Project, which covers 261km-square about 100km from Perth within the South West geological terrane, and 2 pending tenements covering about 77km-square at the Yilgarn Lithium Project.
Tempest reports previous reconnaissance field mapping and sampling at Rocky Hill detected multiple anomalous pathfinder element signals and notes it is continuing to explore for lithium at Yilgarn.
Tempest Minerals is an Australian mineral explorer with a diversified portfolio of projects in Western Australia considered ‘highly’ prospective for precious, base, and energy metals.
These projects include the Mount Magnet, Yilgarn Lithium, and Yalgoo projects in Western Australia, as well as lithium exposure projects in Zimbabwe and Mozambique and development and exploration projects in Papua New Guinea.
Images: Tempest Minerals Ltd
