Australia-based mineral exploration company Tempest Minerals Ltd has announced that it has entered into a binding option agreement with Green Steel and Iron Pty Ltd (GISA) to advance the development of a low-emission iron and steel value chain in Western Australia’s Yalgoo region. The transaction is intended to integrate Tempest’s Remorse magnetite project into a future vertically integrated green iron and steel platform aligned with Australia’s low-carbon industrial strategy.
Under the agreement, GISA has the right to acquire the Remorse magnetite project in exchange for equity. Upon completion, Tempest would receive a 50 percent shareholding in GISA, along with additional options, positioning it as a major stakeholder in the downstream green iron and steel development.
Remorse magnetite resource suited for low-emissions routes
The Remorse deposit forms part of Tempest’s wholly-owned Greater Yalgoo project. Exploration and drilling conducted since 2024 have outlined a large-scale magnetite system with characteristics suitable for pelletizing and direct reduction.
Key resource metrics include an exploration target of up to approximately 110 million mt, with iron grades reaching the low-30 percent range, and a current inferred mineral resource of 63.5 million mt at an average grade of 30.6 percent Fe, reported at a 28 percent Fe cut-off. Metallurgical test work completed to date supports the potential suitability of the Remorse material for reduced-emissions ironmaking.
GISA’s DRI-focused green steel strategy
Established in 2024, GISA is pursuing the development of a sustainable iron reduction and steel manufacturing platform in Western Australia’s Mid-West. Its strategy centers on a multi-user direct reduced iron (DRI) facility. The planned facility is intended to supply reduced iron to electric arc furnace (EAF) steelmaking, including potential integration with the Collie steel mill of Australia-based steelmaker Green Steel of Western Australia. Output is expected to include green iron, hot briquetted iron (HBI) and steel products for both domestic consumption and export markets.
To exercise the option, GISA must satisfy a series of conditions by the end of December 2026. These include securing a mining lease for Remorse, identifying a suitable processing facility site, completing a pre-IPO capital raising of at least A$500,000, and finalizing legal, financial and technical due diligence. Once these conditions are met, GISA will have a 90-day window to exercise the option.