Tempest Minerals Ltd (TEM) is pleased to update the market on the status of the compelling Elephant Project in Western Australia. On 16 August 2023, TEM announced it had entered into a non-binding term sheet outlining intended acquisition terms. TEM advises it has executed a binding agreement (Agreement), which upon settlement, will make TEM an 80% shareholder in Lusture Pty Ltd (owner of the Elephant Project). and
TEM commits to spending $500,000 on exploration at the project to maintain its interest. Next steps include heritage agreement completion and concurrent initial exploration and drilling approvals.
Tempest previously announced the signing of a non-binding term sheet to acquire the Elephant Project 1. The Project comprises 194km2 (135km2 granted – 59km2 application) of exploration leases highly prospective for gold and base metals. The location on the suture between the Yilgarn and Albany-Fraser geological blocks is a favourable location for major discoveries as reflected by multiple world-class deposits in similar geology along this trend.
TEM will purchase 80% of the issued capital of Lusture Pty Ltd (Lusture) (holder of the Elephant Project) from MAC3 Pty Ltd (MAC3). MAC4 Pty Ltd (MAC4) will hold the remaining 20% in Lusture. Both MAC 3 and MAC 4 (or its nominees) are not related parties of TEM.
Legal, financial and technical due diligence in relation to the Elephant Project and Lusture has been completed to TEM’s satisfaction and completion of the Agreement is scheduled to occur on 15 January 2024.
Under the Agreement, TEM will pay $36,000 cash and issue to MAC3 (or its nominee) $64,000 in fully paid ordinary shares (pursuant to TEM’s existing placement capacity under Listing Rule 7.1, to be issued at a price equal to the average of the daily VWAP of TEM Shares for the thirty trading days prior to completion of the Agreement.
To maintain its 80% interest in Lusture, TEM has agreed to incur $500,000 of exploration expenditure over a period of 3 years. Upon identification of an aggregate minimum of 250,000 ounces of gold equivalent of not less than JORC (indicated) category on the Elephant Project within 5 years, TEM will issue as further consideration 30 million fully paid ordinary shares to MAC3, which will be subject to TEM obtaining corporate and regulatory approvals.
MAC4 will retain 20% of Lusture and will be free carried until a decision to mine is made.
TEM will be responsible for maintaining the tenements in good standing as defined by the West Australian mining act and sole funding of all tenement expenditure.
