Tempest Minerals to demerge its lithium projects into new IPO

Tempest Minerals to demerge its 100% owned lithium projects into new IPO

SYDNEY, AUSTRALIA: Tempest Minerals Limited and its wholly owned subsidiary, West Resource Ventures Pty Ltd (WRV), the holder of several lithium tenements in Western Australia will proceed with a new initial public offering (IPO). WRV will be renamed Electra Minerals Ltd.

The new IPO will combine WRV’s Western Australian underexplored hard rock lithium exploration projects with the exciting Smith Creek lithium brine Property in Nevada USA.

West Resource Ventures also proposes to acquire Lithium of Nevada Pty Ltd (LON) which has a binding agreement with TSX-V listed Iconic Minerals Ltd for the rights to acquire up to 50% of the Smith Creek Project.

With an ongoing track record of multiple producing lithium operations, Nevada (USA) is a preferred Lithium investment destination and is considered highly prospective for large lithium brine deposits.

The Smith Creek Project is located within Smiths Creek Valley in Nevada with the current LON claim blocks covering an area of 65.4 km2 over a major gravity low. The enclosed Smith Creek Valley Basin covers 1,507 km2, which is slightly larger than the Clayton Valley Basin where lithium brines are produced. Smith Creek Valley is over 64 km long in a north-northeast direction and averages 14.5 km in width.

The Smith Creek Project is hosted within a volcanic ash unit considered to be a potentially good source of Lithium. Previous drilling at the project did not test for lithium. However previous drillholes did encounter brines at depth. Surface sampling around hot springs and brine evaporites nearby assayed a maximum of 470 ppm Lithium.

WRV (as Electra Minerals) intends to undertake an IPO in which WRV will seek investors to underpin a maximum of 10% of the Pre IPO capital value. West Resource Ventures will then undertake a capital raising to raise approximately $10 million through the issue of WRV shares.

Tempest Minerals Chairman Brian Moller commented, “The demerging of the WA lithium assets is an exciting development and will be able to provide greater focus on these high-quality assets. The combination with the Nevada project will provide Tempest shareholders with even further leveraged exposure to the global lithium market.”

Tempest Minerals Ltd is an Australian based mineral exploration company with a diversified portfolio of projects in Western Australia considered highly prospective for precious, base and energy metals.

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