Tempest Minerals Ltd raises $8.44m in heavily oversubscribed placement

Tempest Minerals Ltd (ASX:TEM) has raised $8.44 million in a heavily oversubscribed placement designed to accelerate exploration in the Yalgoo, Mount Magnet and YLP project areas in WA.

Institutional and sophisticated investors joined the rise, while several leading domestic and international players and funds acted as cornerstones of the placement.

Although the increase accelerates work across Tempest’s portfolio, the funding track will initially support exploration of Yalgoo projects, including the highly publicized polymetallic discovery of Meleya.

Chief executive Don Smith previously said Meleya represented “one of the best potential growth projects in Australia today”.

Positioned to intensify drilling

Addressing the fundraiser, Tempest Chairman Brian Moller said: “It is great to receive such a positive response from wealthy, sophisticated and professional investors who see the value in our projects.

“Our recent mineralized discovery in the Yalgoo area highlights just one example of the enormous potential that TEM is able to unlock.

“With a strengthened cash position, we will have great flexibility to ramp up our drilling and other activities to provide stronger information flow to shareholders.

“We would like to thank shareholders for their support to date and look forward to a very exciting 2022 for the business.”

All eyes on Meleya

Tempest believes that the Meleya project is one of the major base and precious metals exploration opportunities in Australia today.

Place of discovery of Meleya.

The explorer recently identified a previously unrecognized outcrop, extending over 20 kilometers in strike, of highly prospective geology along the strike of nearby Golden Grove and Minjar mines.

Early mapping and geochemistry confirmed the prospectivity of the area and the company is actively exploring multiple targets in the area.

The Meleya area is part of the Warriedar project, 400 kilometers north of Perth in the Murchison region of Western Australia.

The project is part of the iconic Yalgoo greenstone belt, with outcrops of mafic and felsic supracrustal ‘greenstone’ units wrapped around a number of felsic to intermediate intrusions.

These conditions are considered very favorable for the formation of volcanogenic massive sulphides, intrusion-related gold deposits and orogenic vein-type gold.

Addressing the discovery, technical adviser Dr Anthony Morey said: “The identification of a previously unknown greenstone belt on the Warriedar project is something that happens very rarely and is a place outstanding on the path to discovery.”

The fine print

Through the placement, Tempest will issue 99.3 million new shares to institutional and sophisticated investors, who bought at $0.085 each.

Underwriters will also get one free peg option for every two shares purchased, meaning Tempest is expected to issue approximately 49.65 million options, taxable in two years at $0.14, with shareholder approval.

Equity provider PAC Partners Securities served as lead manager for the offering, so it will get a 6% sell fee and 12.4 million options — again, subject to shareholder approval.