Dynamic JV deal with MinRes subsidiary

Dynamic Metals (ASX:DYM) has entered into a binding term sheet for a ‘landmark’ $20 million lithium-focused farm-in and joint venture agreement with HoldCo, a wholly owned subsidiary of Mineral Resources (ASX:MIN).

MinRes is guarantor of the initial cash payments, under which the company will, subject to the satisfaction of certain conditions precedent, sell 40% of all lithium mineral rights held by Dynamic on the Widgiemooltha tenement package for $5 million cash consideration.

Dynamic was advised by Hamilton Locke for the MinRes transaction.

From completion, HoldCo and Dynamic will form a 40:60 unincorporated joint venture. HoldCo has the ability to increase its stake to 65% by sole funding an additional $15 million of exploration expenditure on the tenements over the 4 years following completion.

HoldCo has the further ability to elect to increase its stake to 80% by sole funding expenditure through to a decision to mine.

Upon HoldCo earning 80% interest Dynamic must elect to either remain in JV and contribute to expenses or convert its interest into a royalty.

Dynamic Metals (is focused on advancing a highly prospective portfolio of future facing critical minerals projects in Australia. The company completed an IPO in January 2023 raising $7 million to fully fund an aggressive exploration program across the portfolio.

Its flagship project, Widgiemooltha, covers an extensive area of 880km-square extending between Norseman and Kambalda. The region is well known for its numerous nickel and gold mines, but more recently has emerged in significance for its lithium mineralisation and prospectivity.

MinRes is a mining services company with a growing portfolio of mining operations across multiple commodities, including iron ore and lithium.

Write to Adam Orlando at Mining.com.au

Images: MinRes
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.