Dynamic Metals forms lithium joint venture with MinRes

Dynamic Metals (ASX: DYM) and Mineral Resources (ASX: MIN) have formed a lithium-focused joint venture on the Widgiemooltha project in WA.

In March this year, Dynamic entered a binding term sheet for a farm-in and joint venture agreement with HoldCo, a wholly-owned subsidiary of Mineral Resources.

Dynamic holds 60% of the joint venture while HoldCo has the remaining 40% with the ability to increase its stake to 65% by sole funding a further $15m on exploration over four years. HoldCo can earn up to an 80% interest by sole funding expenditure through to a decision to mine.

Upon HoldCo earning an 80% interest, Dynamic must either choose to remain in the joint venture and contribute to joint venture expenses or convert its interest into a royalty.

Under the joint venture, Dynamic has received $4m in cash payments from MinRes with a further $1m to be paid in July 2025 in exchange for 40% of the lithium rights at Widgiemooltha.

Dynamic managing director Karen Wellman commented on the joint venture.

“We are very pleased to announce the successful formation of the significant joint venture with MinRes on our Widgiemooltha project lithium tenements,” she said.

“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.”

Located 550km east of Perth, the Widgiemooltha project lies in a highly prospective multicommodity mineral field highly prospective lithium, nickel and gold.

The first phase of exploration will focus on developing the lithium targets through surface sampling, geological mapping and auger drilling.