Tempest Minerals Ltd (ASX:TEM) is out to raise up to $1.6 million to support exploration across its Yalgoo and Mount Magnet project areas in Western Australia.
The multi-stage raise comprises a placement to professional and sophisticated investors and a non-renounceable entitlement issue, which will give investors the chance to snap up TEM shares at 1.7 cents each.
Those who participate will receive one attaching option for every three shares they subscribe for, with options set to expire in March 2023.
Tempest describes Yalgoo as “the forgotten goldfield”, where it is developing its Warriedar West, Euro, Meleya and Messenger projects, while the Range project sits within the heart of the prolific Mount Magnet district.
Capital raise to support “enviable portfolio”
Tempest Minerals 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.
“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 Karara and Mt Gibson iron mines to mention a few.
“We are excited to be quickly approaching drilling at our Euro Project, and then plan to step straight into drilling at the nearby Meleya Project in quarter four, along strike of Golden Grove where we have already identified numerous drill targets based upon strong geophysical and geochemical signatures.
“With a strengthened cash position, we’ll have great flexibility to scale up our drilling activities to provide strong newsflow to shareholders.”
Raising details
As it embarks on the $1.6 million raise, Tempest intends to issue 23 million shares via a placement to professional and sophisticated investors.
With shares valued at 1.7 cents each, the ASX-lister hopes to raise $391,000 under the placement portion, with around 7.6 million options to be issued subject to shareholder approval.
In addition, TEM hopes to undertake a non-renounceable entitlement issue with existing eligible TEM shareholders on the basis of one share for every four shares held at the record date.
These shares are also priced at 1.7 cents each, meaning Tempest is out to raise around $1.252 million under the entitlement issue.
Eligible shareholders will be invited to apply for additional securities in the issue if a shortfall is available.
In addition, the company has provided brokers supporting the placement with the right to subscribe to $500,000 of shortfall, if any, in the entitlement issue.
To the extent less than $500,000 of shortfall is available upon the issue’s close, Tempest will undertake a top-up placement to those brokers.
A timetable for the proposed entitlement issue will be issued in due course.