Tempest’s $1.47M Capital Raise Could Dilute Shareholders Amid Exploration Push
Tempest Minerals has completed its entitlement and shortfall offer, raising approximately $1.47 million to fund exploration projects in Western Australia.
- Placement of 367 million new shares and 91 million options completed
- Shortfall offer raised nearly $896,000 at $0.004 per share
- Lead manager Cygnet Capital received options as part of compensation
- Funds earmarked to progress exploration at Western Australian projects
- Offer included free-attaching options exercisable until May 2027
Capital Raise Completion
Tempest Minerals Limited (ASX, TEM) has successfully completed the placement of the shortfall arising from its recent pro-rata non-renounceable entitlement offer. The company issued 223,992,138 new shares and 55,998,034 new options as part of the shortfall offer, raising approximately $895,968. Combined with the initial entitlement offer, the total capital raised amounts to about $1.47 million before costs.
Offer Structure and Allocation
The entitlement offer allowed shareholders to acquire one new share for every two shares held at an issue price of $0.004 per share, with free-attaching options exercisable at $0.01 until May 2027 issued on a ratio of one option for every four new shares. The shortfall was allocated at the discretion of the board in consultation with lead manager Cygnet Capital, who introduced interested parties to take up the remaining shares.
Strategic Use of Funds
Tempest plans to deploy the funds to advance exploration activities across its portfolio of Western Australian projects. The company’s focus remains on precious, base, and energy metals, leveraging its experienced management team’s expertise to maximise shareholder value through data-driven and risk-weighted exploration.
Lead Manager Compensation
As part of its remuneration for managing the placement and offer, Cygnet Capital was issued 28,035,912 options exercisable at $0.01, expiring in May 2027. This aligns the lead manager’s interests with the company’s future growth prospects.
Looking Ahead
With the capital raise complete, Tempest is positioned to accelerate its exploration programs in Western Australia. The company’s management expressed gratitude to shareholders for their support and optimism about the upcoming phases of project development.
Bottom Line?
Tempest’s fresh capital injection sets the stage for intensified exploration, but investors will watch closely for tangible progress.
Questions in the middle?
- What specific exploration milestones will Tempest target with the new funds?
- How might the issuance of new shares and options impact existing shareholders’ dilution?
- What is the likelihood that the free-attaching options will be exercised before expiry?
