Tempest Minerals (ASX: TEM) finalises Tolu Minerals share sale, $1M proceeds to accelerate copper hunt

Highlights

• Tempest Minerals has finalised the sale of 2 million shares in Tolu Minerals Limited (ASX:TOK).
• The sale generated AU$1 million, enabling TEM to advance exploration activities, particularly at the Remorse copper target in Yalgoo.
• Copper prices are expected to hit record highs amid supply threat.

Australia-based mineral exploration company Tempest Minerals LTD (ASX: TEM) recently finalised the sale of 2 million shares in Tolu Minerals Limited (ASX: TOK), resulting in proceeds of AU$1 million. With this addition of capital, TEM intends to accelerate its exploration efforts, particularly focusing on the upcoming drill program at the Remorse copper target in Yalgoo.

This strategic move marks a significant development in TEM's exploration journey, with implications for its financial standing and project portfolio. Beyond the financial gains, the sale of TOK shares allows TEM to maintain exposure to TOK's promising gold project portfolio. This strategic alignment enables TEM to leverage the potential upside of TOK's projects while diversifying its investment portfolio.

Tolu is an emerging mining and exploration company. It has significant exploration tenements adjacent to the Tolukuma Mining Lease, the Mt Penck gold polymetallic system on New Britain Island, and a copper-gold exploration application at Ipi River. TEM had invested AU$1 million at AU$0.37 per share in Tolu Minerals as part of its IPO. The company was listed on the ASX in November 2023. Tolu has also started aggressive exploration across its suite of projects.

Driling planned at Remorse in Yalgoo

TEM is actively progressing its exploration plans with a focus on the Remorse copper target in Yalgoo. In addition to drilling activities at the Remorse and Sanity targets, TEM plans to initiate fieldwork across other projects, demonstrating its commitment to unlocking the potential of its mineral assets.

The Remorse target resides within the extensive TEM Yalgoo holdings spanning about 1,000km² in Western Australia's Murchison region.  

Copper prices expected to hit high

Driven by the transition to renewable energy and electric vehicles, the global demand for copper is on the rise. In this scenario, securing new sources of this essential metal has become paramount.

Amid increasing supply risks, copper prices are expected to tough new highs. Recently, Goldman Sachs Group Inc. stated that copper prices would reach at least US$10,000 by year-end and US$12,000 by Q1 next year. 

Copper prices experienced a surge in April, driven by optimism surrounding the rebound of global manufacturing, despite signs of softness in the physical market, particularly in China.

So far in 2024, copper prices have surged by over 8%, mainly due to apprehensions regarding supply risks.

Amidst the backdrop of a looming copper supply crunch, TEM's focus on the Remorse copper target gains even greater significance. The company's proactive stance towards copper exploration positions it to capitalise on opportunities arising from increasing demand and help ease supply constraints in the market. Further, the strategic sale of TOK shares and efforts in advancing exploration activities highlight the company's upbeat approach to navigating the dynamic mineral exploration landscape.

The share price of TEM was  AU$0.009 on 30 April 2024.