151 Million New Shares Issued at $0.004 in Tempest’s Entitlement Offer
Tempest Minerals has completed a pro-rata entitlement offer, raising over $600,000 to fund exploration in Western Australia, though a significant shortfall remains to be allocated.
- Raised $605,553 through entitlement offer at $0.004 per share
- 39.01% take-up rate from eligible shareholders
- Issued 151 million new shares and 37 million free-attaching options
- Shortfall of 224 million shares and 56 million options to be allocated
- Funds to advance exploration projects in Western Australia
Entitlement Offer Completion
Tempest Minerals Limited (ASX, TEM) has successfully closed its pro-rata non-renounceable entitlement offer, issuing new shares at a modest price of $0.004 each. The offer included free-attaching options exercisable at $0.01, extending until May 2027, providing shareholders with additional upside potential. The company raised approximately $605,553 through the issue of over 151 million new shares and nearly 38 million options.
Shareholder Participation and Shortfall
Despite the capital raise, the take-up from eligible shareholders was relatively low at just 39.01%, resulting in a substantial shortfall of nearly 224 million shares and 56 million options. Tempest has accepted a portion of additional applications beyond entitlements, but the majority of the shortfall remains unallocated. The company’s board, in consultation with lead manager Cygnet Capital, will have discretion to allocate these remaining shares within the next three months.
Strategic Implications
The funds raised will support Tempest’s ongoing exploration activities across its portfolio of Western Australian projects, which are considered highly prospective for precious, base, and energy metals. The company’s management team, with a track record of exploration and corporate success, aims to leverage this capital injection to advance its data-driven and risk-weighted exploration strategy.
Looking Ahead
While the entitlement offer has bolstered Tempest’s cash position, the significant shortfall and subsequent allocation decisions will be closely watched by investors. The final distribution of these shares could impact shareholder dilution and market sentiment. Tempest’s ability to translate this capital into tangible exploration progress will be critical in maintaining investor confidence.
Bottom Line?
Tempest’s next moves on shortfall allocation and exploration results will be pivotal for its market momentum.
Questions in the middle?
- How will the company allocate the remaining shortfall shares and options?
- What impact will the shortfall allocation have on existing shareholder dilution?
- How soon will exploration updates reflect the use of the newly raised funds?
