Dynamic Metals (ASX:DYM) has received $4 million cash as consideration for the initial sale of 40% of the lithium rights at the Widgiemooltha Project in Western Australia, as part of a joint venture (JV) with Mineral Resources (ASX:MIN).
In March, Dynamic, which has a market capitalisation of $6.61 million, entered into a lithium-focused joint venture with HoldCo, a wholly owned subsidiary of MinRes — which is the guarantor of the initial cash payments.
Dynamic says all conditions have been satisfied, resulting in a 40:60 unincorporated JV being formed between both parties.
Managing Director Karen Wellman says the company is very pleased with the outcome.
“As a leader in Australia’s lithium sector, MinRes brings invaluable technical expertise to the project, and we are looking forward to their commencement of the exploration program,” she says.
HoldCo can increase its stake to 65% by sole funding an additional $15 million of exploration expenditure on the tenements over a four year period. The company can elect to increase its stake to 80% by sole funding expenditure through a decision to mine.
Dynamic says that it will receive a final payment of $1 million for HoldCo’s 60% interest on 1 July 2025.
Both parties will negotiate and execute a formal JV agreement and mineral rights sharing agreement, based on the March binding term sheet.
Dynamic Metals is a mineral explorer focused on advancing its underexplored portfolio of minerals critical to decarbonisation and the growing battery metals market.
Write to Aaliyah Rogan at Mining.com.au
Images: Dynamic Metals
