Dynamic Metals has entered into a binding joint venture with a Mineral Resources (MinRes) subsidiary to sell 40 per cent of its lithium rights on the Widgiemooltha project in WA.
The agreement will see Dynamic and MinRes subsidiary HoldCo form a 60 per cent Dynamic/40 per cent MinRes joint venture (JV) to advance lithium exploration on the project.
MinRes will have the option to sole fund $15 million of expenditure over four years to increase its stake in the JV to 65 per cent.
“The Widgiemooltha project is a regionally significant tenement package that has yet to be fully assessed for its lithium potential,” Dynamic Metals managing director Karen Wellman said.
“Although we have had some encouraging results with our first pass exploration activities, the sheer size of the project means that it would likely have taken Dynamic many years and considerable expenditure to assess its potential and realise value.
“We are excited by this transaction as MinRes is a leader in the lithium sector in Australia, with the technical expertise and financial capabilities to do the project justice.”
Of the purchase price, $400,000 will be paid immediately as a signing fee, with $3.6 million in cash paid on completion and a deferred payment of $1 million on July 1 2025.
“The initial consideration will be used to advance exploration of our pipeline of new projects, whilst lithium exploration at Widgiemooltha is expected to generate considerable newsflow, both short and medium term,” Wellman said.
“We look forward to working collaboratively with MinRes over the coming years to deliver value for our shareholders.”