Tempest Minerals (ASX: TEM) to acquire new base metal project in Earaheedy Basin

Highlights

• Tempest Minerals is acquiring the Five Wheels base metal project in a cash and scrip deal with MAC3 Pty Ltd.
• The project located in the Earaheedy Basin remains under-explored for base and precious metals.
• The project shares similar geology to the nearby RTR’s Chinook deposit and the emerging STR’s zinc-lead-copper discoveries

ASX-listed mineral exploration company Tempest Minerals Ltd (ASX: TEM) is strengthening its project portfolio with the acquisition of the Five Wheels base metal project from MAC3 Pty Ltd.

The project, covering 266km² of granted tenure and comprising exploration licence 69/3884, is situated at the northern edge of the Earaheedy Basin.

The project sits ~36km from the discoveries by Rumble Resources Ltd (ASX: RTR). Five Wheels remains unexplored for base and precious metals, and the geology of the project is similar to RTR’s Chinook deposit and Strickland Metals’ (ASX: STK) Iroquois project.

For the project acquisition, TEM is required to make a consideration in the form of cash and shares. According to the company’s update, fully paid ordinary shares valued at AU$64,000 are planned to be issued to MAC3, while AU$36,000 in cash would be paid after the transaction completion.

The transaction is subject to due diligence by TEM and necessary approvals from regulatory authorities, shareholders and other third parties.

The company expects to conclude the share purchase agreement during late 3Q23.

Five Wheels: Nearby and geologically similar to discoveries

The Five Wheels Project, ~146km north of Wiluna in Western Australia, is a highly prospective ground.

Over a hundred years, the Earaheedy basin has been explored for numerous commodities owing to its location near mining towns including Wiluna. The region gained attention in the 2020s after RTR reported a major discovery in 2021. A follow-up came on in April this year, which indicated Inferred Mineral Resource Estimate of 94Mt at 31% Zn + Pb and 4.2g/t Ag.

The Iroquois Project of STK also reported similar styled mineralisation in 2023.

What’s next?

TEM is focused on finalising the conditions related to the acquisition and the share purchase agreement. Post which, the company intends to undertake exploration activities.