- Tempest Minerals (TEM) is demerging its wholly-owned subsidiary West Resource Ventures (WRV) into a new initial public offering (IPO)
- Meanwhile, WRV has entered a binding term sheet to acquire Lithium of Nevada (LON), which plans to earn a 50 per cent stake in the Smith Creek project in the state
- WRV owns several lithium projects in WA, which it will combine with the Smith Creek project once it acquires LON
- West Resource will change its name to Electra Minerals and will launch a pre-IPO capital raising of $3.5 million through convertible notes followed by a $10 million capital raise via ordinary shares
- Tempest Chair Brian Moller says combing the WA tenements with the Nevada project will give Tempest shareholders “even further leveraged exposure to the global lithium market”
- TEM shares are trading steady at 2.8 cents at 12:47 pm AEDT
Tempest Minerals (TEM) is demerging its wholly-owned subsidiary West Resource Ventures (WRV) into a new initial public offering (IPO).
West Resource Ventures owns several lithium projects covering a combined 365 square kilometres in Western Australia. Through the IPO and an associated acquisition, the company will combine these projects with the Smith Creek lithium brine project in Nevada, US.
West Resource Ventures will change its name to Electra Minerals and will launch a pre-IPO capital raising of $3.5 million. It will issue up to 3.5 million convertible notes to potential cornerstone investors (including Tempest shareholders) which will convert to WRV shares at 10 cents each.
West Resource Ventures will then undertake a capital raise under a prospectus to raise around $10 million through the issue of WRV Shares.
“The demerging of the WA lithium assets is an exciting development and will be able to provide greater focus on these high-quality assets,” Tempest Minerals Chair Brian Moller said.
“The combination with the Nevada project will provide Tempest shareholders with even further leveraged exposure to the global lithium market.”
West Resource Ventures has entered a binding term sheet to acquire Lithium of Nevada (LON), which has a separate term sheet with TSX-V-listed Iconic Minerals and its subsidiary, Bonaventure Nevada, for the exclusive right and option to earn a 50 per cent stake in the Smith Creek project.
Under the term sheet, WRV will pay LON shareholders 54.9 million shares to be equally split into consideration and performance shares. The performance shares will convert to ordinary shares in WRV upon LON earning the 50 per cent interest in the Smith Creek project.
Tempest and LON will now advance the pre-IPO capital raise and prepare for the IPO and ASX listing in the March 2023 quarter.
TEM shares were trading steady at 2.8 cents at 12:47 pm AEDT.