Tempest Minerals Ltd has sold the Yalgoo gold asset in Western Australia. In the deal, the company sold the project to Capricorn Metals Limited at A$4.5 million.
The deal consists of cash, scrip and possible milestone payments. The management claimed that the deal enhances liquidity and portfolio focus. The sale also lessens the short-term funding pressure.
The investors are now observing the redistribution of the capital in other assets. The deal is in line with the strategy of Tempest in focusing on iron and multi-commodity growth in the state.
The Yalgoo region in Western Australia hosts several established gold and iron prospects. [Wikipedia]
Tempest Sells Yalgoo Project To Capricorn In Structured Deal
The Tempest Yalgoo Project was sold at a total of 4.5 million. Capricorn has previously paid a $100, 000 cash deposit in December 2025. At settlement, it paid $400,000 in cash. It has also issued 294,811 shares of Capricorn.
The share element amounted to 4,000,000 VWAP 5 days before completion. This combined type of structure restricts instant dilution and offers exposure to the market.
The contingent payments based on the resources and development allow Tempest to increase. The building is indicative of conservative capital discipline in unstable gold markets.
What Additional Payments Could Tempest Receive From The Deal?
Capricorn has consented to contingent payments that are staged. A JORC compliant Mineral Resource Estimate of over 75,000 ounces of gold may result in Tempest receiving the sum of 750,000 in cash.
Another portion of $750,000 would be paid out after a board decision to commence commercial mining. Resource payments are applicable to a single tenement. There are three payments maximum that can be triggered.
Such milestones provide significant value of upside with no increase in capital expenditure. They also attach value to the success of discovery and production preparedness. Australian gold asset sales are typical of this type of structure.
Tempest could get more milestone payments as a result of exploration and resource upgrades. [Kalkaline Media]
Iron Tenements Remain Central To Tempest Strategy
Tempest still held possession of iron mineralisation tenements in the east. They are located in Remorse Deposit and Halo Target. The company gave Capricorn exploration and development rights on other minerals other than iron ore.
This carve-out secures the iron ambitions of Tempest. The management is still developing iron research with the partners. The objective of working with Green Iron and Steel Pty Ltd is to advance the Remorse Iron Deposit.
It will have plans to have a multi-user, vertically integrated iron production hub. The strategy will target long-term domestic supply opportunities.
How Will Tempest Advance Its Western Australia Portfolio Next?
Tempest keeps looking into ventures in Western Australia. According to the company, the discovery drilling in gold mining in the Range Project in Mt Magnet was recently reported.
The management is evaluating other mining and exploration. The revised balance sheet can promote expanded programs. The sale also liberates the technical teams to concentrate on priority targets.
This year, investors seek drilling and development studies updates. The company thinks that disciplined exploration can discover shareholder value.
The company recently reported discovery drilling success at the Range Project, Mt Magnet. [Mining News]
Does The Tempest Yalgoo Project Sale Improve Investor Outlook?
The Tempest Yalgoo Project sale enhances the near-term funding certainty. It contributes to cash and tradable equity. It also generates milestone-based upside. It is now about the development of iron and discoveries. Western Australia is still favorable to invest in gold and iron.
The players in the market prefer firms with narrow profiles and risk minimisation. Tempest seeks to use technical prowess and business acumen. The deal is a clean-up time for efficient expansion.
Also Read: Mining’s Silicon Revolution: How Intelligence is Rewriting the Rules of Discovery and Recovery
FAQs
Q1: What is the total value of the Yalgoo sale?
A1: The consideration totals $4.5 million through cash and shares.
Q2: How many shares were issued to Tempest?
A2: Capricorn issued 294,811 shares valued at $4,000,000.
Q3: What milestone payments are possible?
A3: Two payments of $750,000 each may be triggered by resource and mining decisions.
Q4: Does Tempest still hold assets at Yalgoo?
A4: Yes, it retains iron rights over the eastern tenements.
