Why Have Tempest and Capricorn Extended the Yalgoo Project Sale Completion?
Tempest Minerals and Capricorn Metals have agreed to extend the completion date for the Yalgoo Project sale to mid-February 2026, allowing time to finalise administrative and regulatory requirements without altering deal terms.
- Completion date extended to 14 February 2026
- Transaction terms remain unchanged
- Total consideration of $4.5 million including cash and Capricorn shares
- Both parties remain fully committed to the sale
- Contingent payments linked to resource milestones
Extension Agreed to Finalise Documentation
Tempest Minerals Limited (ASX – TEM) and Capricorn Metals Ltd (ASX – CMM) have mutually agreed to extend the completion date for the sale of the Yalgoo Project to 14 February 2026. This extension provides additional time to complete routine administrative and regulatory documentation necessary to formalise the transfer of the project.
Importantly, the extension does not reflect any change in the commercial terms of the transaction. Both companies remain fully committed to finalising the sale, signalling confidence in the strategic value of the Yalgoo Project.
Deal Structure and Consideration
The binding agreement sees Capricorn Metals acquiring the Yalgoo Project for a total consideration of $4.5 million. This includes an initial $100,000 cash deposit already paid, $400,000 cash payable on completion, and $4 million in fully paid ordinary shares in Capricorn Metals. The share component is calculated based on the five-day volume weighted average price prior to completion, aligning the value with market conditions at that time.
Under the agreement, the tenure of the Yalgoo Project will transfer to Capricorn free of any third-party commitments or royalties. Tempest will retain ownership of the eastern tenements identified as containing iron mineralisation but will grant Capricorn exploration and development rights over all minerals other than iron ore on those tenements.
Contingent Payments and Future Milestones
The deal also includes contingent payments of $750,000 cash upon Capricorn announcing a JORC-compliant Mineral Resource Estimate exceeding 75,000 ounces of gold on the Yalgoo Project, and another $750,000 cash payment upon a board decision to commence commercial mining operations. These payments are structured to incentivise progress and are payable once per tenement, with a maximum of three payments.
This structure reflects a shared commitment to unlocking the project’s potential while managing risk and aligning incentives between the two companies.
Looking Ahead
With the administrative hurdles now the primary focus, investors will be watching closely for the completion of the sale in February 2026. The transaction marks a significant step for Tempest Minerals as it continues to develop its diversified portfolio in Western Australia, including advancing its iron ore project towards development.
For Capricorn Metals, acquiring the Yalgoo Project adds a promising asset to its portfolio, with the potential for resource upgrades and eventual commercial mining operations that could enhance shareholder value.
Bottom Line?
The extended timeline buys both parties breathing room, but eyes will be on February 2026 for finalisation and progress on key resource milestones.
Questions in the middle?
- What are the specific administrative or regulatory hurdles causing the delay?
- How might market conditions affect the valuation of Capricorn shares issued on completion?
- What is the timeline and likelihood for achieving the contingent payment milestones?
