Tempest Minerals Ltd (ASX:TEM) allots placement shares, gears up for exploration success

Highlights

• Tempest has allotted 23,000,000 ordinary fully paid shares to raise AU$391,000 (before costs).
• The bolstered cash position will aid the company to unlock the true potential of its highly projects in the Yalgoo and Mount Magnet project areas.
• Tempest focuses on drilling at the Euro gold and base metals project where it is also evaluating the iron ore potential. The company would also be conducting drilling at the Meleya project in Q4.

As part of its  capital raising plan to ramp up exploration at its Yalgoo and Mount Magnet projects, Australian mineral explorer Tempest Minerals Ltd (ASX:TEM) has raised AU$391,000 (before costs) via share placement.

On Wednesday, the mining company had allotted 23,000,000 ordinary fully paid shares at a price of 1.7 cents per share. The shares were issued in compliance with the Company’s existing placement capacity under Listing Rule 7.1 and 7.1A.

Must Read: Tempest Minerals Ltd (ASX:TEM) receives overwhelming support from investors, announces capital raising plans

On 26 August 2021, Tempest had announced that it had received overwhelming response from professional and sophisticated investors to raise up to AU$1.6 million (before costs) to fuel the next leg of exploration activities at its highly prospective mineral projects.

Tempest’s latest capital raising plans included an AU$391,000 (before costs) share placement and a non-renounceable entitlement issue to raise another AU$1.25 million (before costs) from the existing eligible shareholders.

The funds will be utilised towards the following –

• Ongoing exploration program at TEM’s Western Australian exploration portfolio in the Yalgoo and Mount Magnet regions
• Working Capital

Also Read: Tempest Minerals Ltd (ASX:TEM) delineates iron-rich horizons at Euro project, shares zoom 5%

Capital infusion to propel exploration success

Source: Company Website

Tempest enjoys strong support from investors, who believe in the potential of the Yalgoo and Mount Magnet project areas.

The miner is thrilled to receive a “very positive response from high net worth, sophisticated and professional investors” which reflects their confidence in what Tempest calls enviable projects, which are located in the neighbourhood of tier-1 iron ore, gold and polymetallic deposits like EMR’s Golden Grove mine, Silver Lake Resources Limited’s (ASX:SLR) Rothsay and Deflector gold operations, Karara, and the Mount Gibson iron ore mines.

Source: Company Website

Currently, Tempest is focusing on drilling at the Euro gold and base metals project, where it is also evaluating the iron ore potential. The company would also be conducting drilling at the Meleya project in Q4. The proposed drilling program at the Meleya project will focus on the area, located along strike of Golden Grove, where multiple promising drill targets for the exploration activity have already been delineated.

Must Read: Tempest Minerals Ltd (ASX:TEM) highlights milestones in its June quarter report

The bolstered cash position will aid the company to unlock the true potential of its Yalgoo and Mount Magnet projects.

Tempest traded at AU$0.019 a share on 2 August 2021 at 11:13 AM AEST, with a market capitalisation of AU$4.89 million.