Tempest Minerals to Receive $4.5M Plus Milestones from Capricorn Metals Acquisition
Tempest Minerals has agreed to sell its Yalgoo Project to Capricorn Metals for $4.5 million in cash and shares, with additional payments tied to future discoveries and production milestones. The deal, expected to complete in early 2026, leaves Tempest retaining iron rights on key tenements while refocusing on other Western Australian assets.
- Capricorn Metals to acquire Yalgoo Project for $4.5 million cash and shares
- Additional milestone payments contingent on gold resource and mining commencement
- Tempest retains iron ore rights on eastern tenements
- Completion expected early 2026, subject to ASX approvals
- Tempest to continue exploration on other Western Australian projects
Strategic Acquisition in Western Australia
Tempest Minerals Ltd (TEM) has entered into a binding agreement to sell its Yalgoo Project tenement package to Capricorn Metals Limited (CMM) for a total consideration of A$4.5 million, comprising a mix of cash and Capricorn Metals shares. The transaction also includes potential milestone payments linked to future exploration success and commercial mining activities.
The Yalgoo Project spans approximately 1,000 square kilometres in a region known for its mineral prospectivity, particularly for gold and iron ore. Since 2020, Tempest has employed a data-driven exploration approach that has yielded multiple new mineral discoveries, including the emerging Remorse magnetite deposit. This strategic divestment allows Capricorn Metals, which already has a significant regional presence, to consolidate and expand its footprint in the area.
Deal Structure and Key Terms
The agreement involves an initial cash deposit of $100,000, followed by $400,000 on completion, and the issuance of $4 million worth of Capricorn Metals fully paid ordinary shares to Tempest. Importantly, Tempest retains ownership of the eastern tenements identified as iron-bearing, granting Capricorn Metals exploration and development rights for all minerals except iron ore on those tenements.
Capricorn Metals has also agreed to make contingent cash payments of $750,000 upon announcing a JORC-compliant gold resource exceeding 75,000 ounces on the Yalgoo Project, and another $750,000 upon board approval to commence commercial mining. These milestone payments are capped at three per tenement, providing a clear incentive for Capricorn Metals to advance exploration and development aggressively.
Implications for Both Companies
For Tempest Minerals, the sale represents a significant capital injection and an opportunity to focus on other promising projects such as The Range Project near Mt Magnet, the Five Wheels Project with base metal potential, and the Elephant Project, which hosts a large untested gold anomaly. The retention of iron rights on key tenements also positions Tempest to benefit from ongoing iron ore developments, including its partnership with Green Steel and Iron Pty Ltd.
Capricorn Metals stands to benefit from acquiring a large, well-explored landholding with demonstrated mineralisation and exploration upside. The Yalgoo Project complements Capricorn’s existing portfolio and regional strategy, potentially accelerating its growth trajectory in Western Australia’s competitive gold and iron ore sectors.
Next Steps and Market Outlook
Completion of the deal is expected in early 2026, pending procedural due diligence and ASX regulatory approvals, including confirmation that Chapter 11 listing rules do not apply or, if they do, shareholder approval is obtained. Investors will be watching closely for updates on milestone achievements, exploration results, and any shifts in strategic focus from both companies.
This transaction underscores the dynamic nature of mineral exploration in Western Australia, where data-driven approaches and strategic partnerships are reshaping the landscape. Both Tempest and Capricorn Metals appear well positioned to capitalise on their respective strengths as the Yalgoo Project transitions to a new phase under Capricorn’s stewardship.
Bottom Line?
The Yalgoo Project acquisition marks a pivotal step for Capricorn Metals’ regional expansion while enabling Tempest to sharpen its exploration focus elsewhere.
Questions in the middle?
- How quickly can Capricorn Metals advance exploration to trigger milestone payments?
- What are the prospects for iron ore development on the eastern tenements retained by Tempest?
- Will shareholder approval be required, and could this delay completion?
