Tempest Minerals (ASX:TEM) has entered into a binding agreement with international natural resources investor Cambrian to raise equity via a private placement.
Tempest intends to raise $1 million with Cambrian investing $250,000 and assisting in the balance.
Cambrian is associated with corporate figure Neil Herbert who is the executive Chairman of Atlantic Lithium (ASX:AIM).
The funds raised will be primarily used for ongoing exploration across Tempest’s Western Australian projects, including advancing the Remorse Project, which is located on the eastern side of the Yalgoo Project.
Chairman Brian Moller says the company is thrilled to have Cambrian join in this raising as a cornerstone investor, along with Neil Herbert “who we believe see the value Tempest offers with near-term development at Remorse and a striking exploration portfolio”.
The Remorse target is characterised by a coherent core of copper-zinc mineralisation. The target also shows north-east trending nickel and rare earth zones, indicating a complex mineral system.
Under the two tranche private placement, shares will be issued at $0.005 per share.
As part of the agreement, Cambrian will also receive options to acquire an additional amount of shares equivalent to 5% of the total new shares issued, exercisable at a 100% premium over the issue price and an expiry 24 months from the date of issue.
Tempest is currently focused on progressing various studies and preparing for further drilling at Remorse.
Further, the company expects to convene a general meeting to seek shareholder approval for tranche two of the placement.
Tempest Minerals is an Australia-based mineral explorer focused on a diversified portfolio of projects in Western Australia considered prospective for precious, base, and energy metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Tempest Minerals
