Why Tempest Minerals (ASX:TEM) is selling Capricorn shares to fund its WA iron and gold exploration

Sonal Goyal

12 November 2026 02:07 PM AEDT

Why Tempest Minerals (ASX:TEM) is selling Capricorn shares to fund its WA iron and gold exploration

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Key Highlights

Tempest sold 44,000 Capricorn shares for $686,000 in the September quarter instead of raising equity.
Cash was $1.34 million at 30 September, and the 5B estimates 4.22 quarters of funding from cash alone.
The Remorse iron deposit has a JORC 2012 inferred resource of 63.5 million tonnes at 30.6% iron.
Chairman Brian Moller will step down on 7 December 2026, and the AGM is on 27 November 2026.

Tempest Minerals is a Perth-based explorer with iron ore, gold and base metals projects in Western Australia. In February 2026 it sold its Yalgoo gold tenements to Capricorn Metals (ASX:CMM) for $4.5 million, of which $4.0 million was paid in Capricorn shares. Those shares have become its main source of funding. In the September quarter, Tempest sold 44,000 Capricorn shares for $686,000 instead of raising equity.

According to its Appendix 5B released on 30 October 2026, the sale lifted Tempest's cash to $1.34 million at 30 September. The company also held 200,000 Capricorn shares at quarter end.

The portfolio

Tempest kept the iron rights over part of Yalgoo when it sold the gold tenements. Those rights host the Remorse deposit, which has a JORC 2012 inferred resource of 63.5 million tonnes at 30.6% iron. Tempest has also published an exploration target there. That target is conceptual and is not a resource. The company has an option agreement under which Green Steel and Iron Pty Ltd (GISA), a proposed Mid-West green steel developer, could acquire Remorse for shares. GISA's stated aim is an IPO, and it has applied to the federal Green Iron Fund, but that application has not been decided. The deal therefore depends on a third party that has yet to secure funding.

At the Range gold project near Mount Magnet, earlier drilling returned results including 3 metres at 3.2g/t gold from 58 metres. During the quarter Tempest reviewed this drilling data. No fieldwork was done at the Five Wheels base metals project in the Earaheedy Basin. Tempest also has a $250,000 milestone payment entitlement linked to Argosy Minerals' Tonopah lithium project in Nevada.

A year of portfolio changes

Tempest entered a Trading halt on 2 March 2026 and then a voluntary suspension, before announcing on 5 March a proposed $2 million all-scrip Acquisition of New Zealand gold explorer Zealandia Resources. In April it withdrew from the Elephant Project joint venture. Then, on 21 May, Tempest said the Zealandia deal had been terminated after due diligence. The company says it continues to look for new opportunities across commodities and jurisdictions, but nothing has been announced since.

Cash and spending

The 5B shows a net operating outflow of $271,000, mainly administration and corporate costs and staff costs. A further $46,000 went on capitalised exploration. The company estimates 4.22 quarters of funding from cash alone, and that figure does not include the Capricorn shares. There are no Debt facilities and no Equity was raised in the quarter. For the December quarter, Tempest has flagged only desktop studies at Mount Magnet and Yalgoo, which suggests a low level of field activity.

Board change

On 2 November Tempest announced that Brian Moller, chairman since 2017, will step down on 7 December 2026. The board will consider appointing a successor. The Annual General Meeting will be held at 12.00pm (AWST) on 27 November 2026 in Perth.

Risks

Green iron and steel projects of the kind GISA proposes typically need large amounts of Capital and, in GISA's case, it is seeking government support. The next items to watch are the appointment of a new chairman and any progress on GISA's funding.

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