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Highlights
- Tempest Minerals has executed a binding agreement to sell its Yalgoo Project to Capricorn Metals for total consideration of AUD 4.5 million.
- The transaction includes a mix of cash and Capricorn Metals equity, with additional contingent milestone payments.
- Tempest will retain ownership of the eastern tenements identified as iron-bearing.
- Capricorn will acquire full ownership of the Yalgoo Project tenements, subject to standard due diligence and regulatory approvals.
- Tempest shares rose 28.6% to AUD 0.009 following the announcement of the agreement.
Tempest Minerals Limited (ASX:TEM) has entered into a binding agreement with ASX-listed Capricorn Metals Limited for the sale of its Yalgoo Project tenement package in Western Australia. The transaction is valued at AUD 4.5 million.
Under the agreement, Capricorn will acquire full ownership of the Yalgoo Project tenements, subject to standard conditions precedent, while TEM will retain ownership of the eastern tenements, which have been identified as prospective for iron mineralisation.
Deal Structure and Consideration
The total consideration of AUD 4.5 million will be paid through a combination of cash and equity. This includes an initial cash deposit of AUD 100,000, followed by AUD 400,000 in cash payable on completion. The balance of AUD 4.0 million will be satisfied through the issue of Capricorn Metals shares to TEM, priced using Capricorn’s five-day volume weighted average price prior to completion.
Beyond the initial payment, the agreement includes milestone-based incentives - Capricorn will pay AUD 750,000 upon announcing a JORC-compliant Mineral Resource exceeding 75,000 ounces of gold at the Yalgoo Project, plus an additional AUD 750,000 if the board approves commercial production. Resource-based payments are payable once per tenement, with a maximum of three such payments.
Retained Rights and Key Conditions
The company will grant Capricorn exploration and development rights for all minerals other than iron ore across the retained iron tenements. Completion of the transaction is subject to procedural due diligence, administrative conditions precedent, and shareholder approval if required.
Yalgoo Project Background and Exploration Success
Covering approximately 1,000 square kilometres, the Yalgoo Project has been a core exploration focus for Tempest since 2020. The company applied a data-driven exploration strategy to identify underexplored and highly prospective geological domains, resulting in multiple new mineralisation discoveries. This approach assisted in the discovery of the Remorse magnetite deposit in 2024.
The scale and prospectivity of Yalgoo have long positioned it as a suitable asset for a larger regional operator. Capricorn’s ongoing consolidation and activity in the region create alignment between the project’s potential and the company’s operational footprint.
Next Steps and Ongoing Focus
Completion of the transaction is expected in early 2026. Tempest will continue work on the Remorse deposit under its existing arrangement with Green Steel and Iron Pty Ltd and will maintain a focused exploration program across its broader Western Australian portfolio, including the Range, Five Wheels and Elephant projects.
Details of Green Steel Agreement here - Tempest Minerals (ASX:TEM) Shares Jump on Green Steel Agreement for Remorse Deposit
TEM Shares Rally
TEM shares were trading 28.57% higher at AUD 0.009 per share at the time of writing on 23 December 2025.
