Tempest intends to use the funding to support its ongoing exploration at the Western Australian exploration portfolio
Tempest Minerals has secured an equity investment of up to A$1.6m ($1.2m) to support its ongoing exploration of the prospective Yalgoo and Mount Magnet project areas in Western Australia.
The funding includes a placement of its share at a price of 1.7 cents per share, to raise A$391,000 and a non-renounceable entitlement issue at the same price, to raise up to A$1.25m.
Investors in both placement and entitlement issue are eligible to receive one attaching option for every three shares subscribed, with an exercise price of 3 cents, valid till 31 March 2023.
Tempest intends to use the funding proceeds to support its ongoing exploration activities at the Western Australian exploration portfolio, and to boost its working capital.
Tempest managing director Don Smith said: “It is pleasing to receive a very positive response from high net worth, sophisticated and professional investors who see the huge potential at our Yalgoo and Mount Magnet project areas.”
“With a strengthened cash position, we’ll have great flexibility to scale up our drilling activities to provide strong newsflow to shareholders.”
As part of the placement, the company would issue 23,000,000 shares at a price of 1.7 cents per share, along with 7,666,667 options to eligible investors to raise A$391,000.
The issue of placement options is subject to shareholder approval and completion of the proposed entitlement issue.
Tempest would undertake a non-renounceable entitlement issue to its eligible shareholders on the basis of one share for every four shares at the same price to raise around A$1.252m.
Smith added: “We consider our properties to be an enviable portfolio, situated amongst a number of tier-1 iron ore, gold and polymetallic deposits such as the nearby Golden Grove VMS camp, Silver Lake’s high-grade Deflector and Rothsay gold operations and the arara and Mt Gibson iron mines to mention a few.”
The company intends to immediately start drilling at Euro Project, followed by drilling at the nearby Meleya Project in the fourth quarter of 2021.
It has already identified several drill targets along the strike of Golden Grove, based upon strong geophysical and geochemical signatures.