Tempest Minerals has completed the sale of its Yalgoo Project to Capricorn Metals for $4.5 million in cash and shares, while retaining key iron ore rights. The deal includes potential milestone payments tied to future gold discoveries and mining progress.
- Yalgoo Project sold to Capricorn Metals for $4.5 million
- Deal includes cash, shares, and contingent milestone payments
- Tempest retains iron rights over key tenements including Remorse Deposit
- Capricorn Metals to explore and develop non-iron minerals
- Tempest continues exploration in Western Australia and iron project development
Strategic Asset Sale Completed
Tempest Minerals Ltd (ASX, TEM) has officially completed the sale of its Yalgoo Project to Capricorn Metals Limited (ASX, CMM) for a total consideration of $4.5 million. The transaction was settled through a combination of cash payments and Capricorn Metals shares, reflecting a strategic move by Tempest to crystallise value from its gold assets while maintaining exposure to iron ore potential.
The initial cash component included a $100,000 deposit paid in December 2025, followed by a $400,000 payment on settlement. Capricorn Metals also issued 294,811 shares to Tempest, valued at approximately $4 million based on the recent volume-weighted average price of CMM shares. This blend of cash and scrip provides Tempest with immediate capital and ongoing upside linked to Capricorn’s share price performance.
Milestone Payments and Retained Iron Rights
Beyond the upfront consideration, the deal includes contingent milestone payments that could add up to $1.5 million in cash. These payments hinge on Capricorn Metals achieving key exploration and development milestones, a JORC-compliant mineral resource estimate exceeding 75,000 ounces of gold, and a board decision to commence commercial mining operations on the Yalgoo Project. Notably, these payments are structured per tenement, with a maximum of three payments, potentially enhancing Tempest’s future revenue streams if Capricorn’s exploration efforts prove successful.
Importantly, Tempest has retained ownership of the iron mineralisation rights over the eastern tenements, which include the Remorse Deposit and the recently identified Halo Targets. While Capricorn Metals holds exploration and development rights for minerals other than iron ore, Tempest’s retention of iron rights signals its continued commitment to advancing its iron projects in Western Australia.
Ongoing Exploration and Development Focus
Tempest is actively pursuing further exploration across its Western Australian portfolio, including recent gold discoveries at the Range Project near Mt Magnet. The company is also progressing its iron ore ambitions through collaboration with Green Iron and Steel Pty Ltd, aiming to develop the Remorse Iron Deposit into a multi-user, vertically integrated iron production hub. This dual focus on precious metals exploration and iron ore development reflects Tempest’s diversified strategy to maximise shareholder value.
With the Yalgoo Project sale now complete, Tempest is well-positioned to concentrate resources on its iron assets and other exploration opportunities, while benefiting from potential milestone payments linked to Capricorn Metals’ success at Yalgoo.
Bottom Line?
Tempest’s sale of Yalgoo crystallises value while keeping iron ambitions alive, setting the stage for future growth.
Questions in the middle?
- How soon might Capricorn Metals announce a JORC-compliant resource estimate at Yalgoo?
- What are Tempest’s plans and timelines for advancing the Remorse Iron Deposit?
- Could milestone payments from Capricorn materially impact Tempest’s cash flow in the near term?