Tempest Minerals (ASX:TEM) has retained Cygnet Capital as lead manager for a $1.47 million entitlement offer and to advise on the placement of any shortfall shares upon the offer’s close.
Proceeds from the raise will predominantly be deployed towards Yalgoo exploration and iron development, as well as other project costs and gold exploration.
The raise includes a non-renounceable rights issue of one new share for every two shares held at an issue price of $0.004 per new share, together with free-attaching options exercisable at $0.010 on or before 31 May 2027, issued on the basis of one option for every four new shares issued.
The new options will be issued as unquoted securities and any new securities not taken up will form part of the shortfall. Eligible shareholders who take up all of their rights under the offer will also be afforded the opportunity to apply for additional shares under the shortfall facility.
Under the entitlement offer, Tempest will issue a maximum of just under 367.265 million new shares and over 91.816 million new options.
Upon completion of the entitlement offer and subject to obtaining shareholder approval, Tempest will issue Cygnet more than 28 million options calculated as 6% of the new shares issued under the offer, with an exercise price of $0.010, and an expiry of 31 May 2027.
Founded in 2001, Cygnet Capital specialises in traditional full-service stockbroking and corporate advisory service. The firm focuses on investment opportunities in the micro-cap area of the ASX and its universe are companies with a market capitalisation less than $300 million.
Tempest Minerals is an Australian based mineral exploration company with a diversified portfolio of projects in Western Australia considered ‘highly prospective’ for precious, base, and energy metals.
Tempest’s flagship project is the Yalgoo region of Western Australia. It totals more than 1,000km2 and is located near high-profile neighbours across multiple commodities.
The company has used data-driven processes to identify poorly or unexplored areas of highly prospective geology. This approach has had considerable success and includes the discovery of multiple instances of new mineralisation including the substantial Remorse magnetite deposit in 2024.
The project contains a number of different geological domains – though much of these have considerable overlap. Within these domains, exploration targets continue to be identified through ongoing exploration and data analysis and are being explored systematically according to prioritisation based on geological and other criteria.
The Remorse deposit sits on the eastern side of the Yalgoo Project, near a number of historical gold, iron and base metal occurrences. Work at the Remorse target in 2023 and 2024 indicated a very strong base metals signature. In September 2024 Tempest started drilling, which ultimately resulted in the discovery of a ‘large scale’ magnetite iron deposit.
Write to Adam Orlando at Mining.com.au
Images: Tempest
