Tempest Raises $1.47M at $0.004 per Share with Free-Attaching Options
Tempest Minerals has announced a $1.47 million non-renounceable pro-rata entitlement offer to fund its gold and iron ore projects in Western Australia, offering new shares with free-attaching options to existing shareholders.
- 1-for-2 entitlement offer at $0.004 per share with free-attaching options
- Funds raised aimed at advancing gold and Yalgoo iron ore exploration
- Offer priced at a 9.5% discount to recent VWAP
- Cygnet Capital appointed as lead manager with 6% fee
- Offer open to eligible Australian and New Zealand shareholders
Entitlement Offer Details
Tempest Minerals Ltd (ASX: TEM) has announced a non-renounceable pro-rata entitlement offer to raise approximately $1.47 million before costs. Eligible shareholders in Australia and New Zealand can subscribe for one new share for every two shares held at an issue price of $0.004 per share. Alongside each tranche of four new shares, shareholders will receive one free-attaching option exercisable at $0.01 until 31 May 2027.
The offer price represents a 9.5% discount to the five-day volume weighted average price (VWAP) of $0.00438, reflecting a modest incentive for shareholders to participate. The new shares will rank equally with existing shares, while the options will be issued as unquoted securities.
Use of Funds and Strategic Focus
Proceeds from the entitlement offer are earmarked primarily for advancing exploration and development activities at the Yalgoo iron ore project, with $700,000 allocated to this purpose. An additional $500,000 is planned for other project costs and gold exploration, while $127,485 will support working capital needs. The company has reserved the right to adjust these allocations if better opportunities arise, signaling flexibility in capital deployment.
Lead Manager and Offer Mechanics
Cygnet Capital Pty Limited has been appointed as lead manager for the offer and will receive a 6% fee on funds raised. The company also plans to issue Cygnet up to 28 million options as part of the arrangement, subject to shareholder approval. Shareholders who fully subscribe to their entitlement will have the opportunity to apply for additional shares under a shortfall facility, with allocations at the discretion of the lead manager and the company.
Timetable and Next Steps
The entitlement offer opens on 19 May 2025 and closes on 3 June 2025, with new shares expected to commence trading on the ASX on 12 June 2025. The company has lodged a prospectus with ASIC and ASX, which will be dispatched to eligible shareholders shortly. Investors are advised to review the prospectus carefully and consider professional advice before participating.
Tempest Minerals continues to focus on unlocking value from its Western Australian portfolio, leveraging its experienced management team to drive exploration success. This capital raise is a critical step in funding near-term growth initiatives, particularly at the Yalgoo iron ore project, which remains a key asset in the company’s development pipeline.
Bottom Line?
Tempest’s capital raise sets the stage for intensified exploration, but shareholder uptake and market response will be key to watch.
Questions in the middle?
- Will the entitlement offer achieve full subscription given the modest discount?
- How will the free-attaching options impact future dilution and shareholder value?
- What exploration milestones can investors expect following the capital raise?
