Dynamic Metals announces landmark lithium-focused joint venture with Mineral Resources

Dynamic Metals Limited (ASX: $DYM) has entered into a binding joint venture and farm-in agreement with a 100% owned subsidiary of Mineral Resources Limited (ASX: $MIN) for the sale of 40% of its lithium rights on the Widgiemooltha Project tenements for a purchase price of $5M. The agreement also forms a 60% Dynamic / 40% MinRes joint venture to advance lithium exploration on the Project, with potential for MinRes to increase its stake to 80% by sole funding expenditure through to a Decision to Mine. Dynamic retains rights to all minerals other than lithium over the Project and anticipates the transaction to complete in the second quarter of CY 2024.

Executive Commentary on the Landmark Joint Venture

The Widgiemooltha Project is a regionally significant tenement package that has yet to be fully assessed for its lithium potential. 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. The nearby location of the Bald Hill mine, operated by MinRes, may offer a pathway to production for any discoveries on the Widgiemooltha Project. 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. We look forward to working collaboratively with MinRes over the coming years to deliver value for our shareholders.

Summary of the Landmark Joint Venture and Future Outlook

Dynamic Metals Limited (ASX: $DYM) has successfully signed a landmark $20m lithium-focused joint venture with Mineral Resources, involving the sale of 40% of its lithium rights on the Widgiemooltha Project tenements for a purchase price of $5M. The agreement also forms a 60% Dynamic / 40% MinRes joint venture to advance lithium exploration on the Project, with potential for MinRes to increase its stake to 80% by sole funding expenditure through to a Decision to Mine. Dynamic retains rights to all minerals other than lithium over the Project and anticipates the transaction to complete in the second quarter of CY 2024. The Managing Director, Karen Wellman, expressed excitement about the transaction, highlighting MinRes's leadership in the lithium sector and the potential for significant newsflow from the lithium exploration at Widgiemooltha. The initial consideration will be used to advance exploration of Dynamic's pipeline of new projects, while the company looks forward to collaborating with MinRes to deliver value for its shareholders in the future.