Tempest Minerals (ASX:TEM) is gearing up to complete a heritage agreement and concurrent initial exploration and drilling approvals for the Elephant Project in Western Australia.
This follows an announcement on 16 August 2023 that the company had entered into a non-binding term sheet to acquire an 80% shareholder in privately held Lusture – owner of the Elephant Project.
Under the final commercial terms, Tempest has agreed to spend $500,000 on exploration at the Elephant project to maintain its 80% interest in Lusture.
Tempest will purchase the 80% of Lusture’s issued capital from privately held company MAC3.
Upon identifying an aggregate minimum of 250,000 ounces of gold of no less than JORC indicated category on the project within 5 years, Tempest will issue a further 30 million fully paid ordinary shares to MAC3, subject to Tempest obtaining shareholder, corporate, and regulatory approvals.
Under the agreement, Tempest will pay $36,000 cash and issue $64,000 in fully paid ordinary shares to MAC3 or its nominee at the 30-day volume weighted average price (VWAP) of Tempest shares.
Tempest Minerals’ share price had climbed 25% to $0.010 as of 11am AEDT today (8 January).
The Elephant project covers 194km-square of exploration leases considered to be ‘highly prospective’ for gold and base metals.
Tempest Minerals is an Australian-based mineral explorer with 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
