- Tempest Minerals (TEM) signs a memorandum of understanding (MOU) with Karara Mining (KML) to enter a joint venture (JV) over the Karara project in Western Australia
- The agreement will see Tempest have access to an area of 138 square kilometres in an under explored region of the Yalgoo Greenstone Belt
- TEM will have the right to earn a 70 per cent interest in the project over four years by funding exploration costs
- On the market this morning, TEM shares are trading 8.16 per cent lower today at 4.5 cents each at 12:13 pm AEST
Tempest Minerals (TEM) has signed a memorandum of understanding (MOU) with Karara Mining (KML) to enter a joint venture (JV) over the Karara project in Western Australia.
The agreement will see Tempest have access to an area of 138 square kilometres in an under explored region of the Yalgoo Greenstone Belt.
TEM will have the right to earn a 70 per cent interest in the project over four years by funding exploration costs.
In the first stage of the JV, Tempest will pay $30,000 in cash or shares and fund $800,000 of exploration to earn a 51 per cent interest.
The second stage will allow it to extend its interest to 71 per cent by paying $20,000 in cash or shares and funding $400,000 of exploration.
KML Senior Executive Dr Gaomai Trench said the partnership is mutually beneficial to both companies.
“With KML’s renewed focus on production at the Karara Magnetite Mine, there is a natural synergy to work on our projects with Tempest who are actively exploring in the region,“ she said.
TEM shares were trading 8.16 per cent lower today at 4.5 cents each at 12:13 pm AEST.