Tempest Minerals Secures 50% Stake in Green Steel Venture via Remorse Option

Strategic Partnership for Green Steel

Tempest Minerals Ltd (ASX – TEM) has taken a significant step towards commercialising its Remorse Magnetite Project by entering a binding option agreement with Green Steel and Iron Pty Ltd (GISA). This deal aims to establish a vertically integrated green steel production facility in the Yalgoo region of Western Australia, marking a notable development in the state's emerging low-emission steel industry.

Under the terms of the agreement, GISA has been granted an option to acquire the Remorse project, with Tempest receiving 50% equity in GISA as part of the consideration. This structure not only provides TEM shareholders with exposure to the green steel value chain but also aligns with broader industry trends towards sustainable iron and steel production.

Project and Market Context

The Remorse deposit, located within TEM’s 100% owned Greater Yalgoo Project, has been the focus of extensive exploration since 2024, culminating in a substantial magnetite resource estimate. While the exploration target remains conceptual and further drilling is required to upgrade the resource classification, metallurgical studies have shown promising results for pelletising and direct reduction processes; key steps in producing low-emission steel products.

GISA, a Western Australian company established in 2024, is developing a multi-user Direct Reduced Iron (DRI) plant in the Mid-West region, partnering with global steelmaking technology leader Danieli. The planned facility aims to produce green iron and steel products sourced from local iron ore deposits, including Remorse, under the Mid-West Iron Alliance banner.

Conditions and Governance

The option agreement includes several conditions precedent that must be satisfied by 31 December 2026 for GISA to exercise the option. These include securing a mining lease for Remorse, acquiring a suitable site for the facility, completing a pre-IPO capital raise of at least $500,000, and conducting comprehensive due diligence. TEM retains the right to exercise the option on the same terms and will appoint two board members to GISA, maintaining influence as long as it holds at least 20% equity.

Should GISA fail to achieve key milestones, including a successful IPO within 18 months of acquiring Remorse, TEM has the right to reacquire the project and cancel its shareholding in GISA. This clause underscores the conditional nature of the deal and the importance of timely execution.

Implications for Western Australia’s Green Steel Future

This agreement represents a strategic alignment between mineral exploration and green steel manufacturing ambitions in Western Australia. It leverages TEM’s high-quality magnetite resource and GISA’s expertise and partnerships to potentially create a low-emission steelmaking hub in the Mid-West region. The timing coincides with federal government initiatives such as the Green Iron Fund, which could provide further support for such projects.

For investors and industry watchers, the deal offers a glimpse into the evolving landscape of sustainable steel production in Australia, where resource owners and technology developers collaborate to meet growing demand for greener industrial processes.