Groundbreaking: MinRes joins Dynamic for lithium hunt

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Groundbreaking: MinRes joins Dynamic for lithium hunt

Dynamic Metals has pocketed $4 million after finalising a ****** venture (JV) agreement with Mineral Resources where the latter will grab an initial 40 per cent of the lithium rights at the Widgiemooltha play in Western Australia.

MinRes will also be required stump up a further $1 million in 12 months as part of the deal that could see it earn up to 65 per cent of the project, which sits 100km south of Kalgoorlie, by sole-funding $15 million in exploration work during the next four years.

The JV, first announced in March and now officially underway, marks a substantial investment by MinRes via its a 100 per cent-owned subsidiary HoldCo and sets the stage for a robust exploration and development phase.

Also under the terms of the agreement, HoldCo can further elevate its interest in Widgiemooltha to an 80 per cent slice by funding the project through to a final decision to mine (FID).

We are very pleased to announce the successful formation of the significant ****** venture with MinRes on our Widgiemooltha Project lithium tenements. 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.

The company says it sees the JV as a pivotal plank for its operations moving into the future. The Widgiemooltha project covers an extensive area of nearly 800 square kilometres and is not only rich in lithium, but also highly prospective for nickel and gold.

Should an economic discovery be made, processing may well be possible without the need for a new plant given MinRes also has operations at its 26 million-tonne Bald Hill and 66 million-tonne Mt Marion lithium mines, which are less than 20km away and could potentially take the ore.

MinRes appears to be clearly signalling its positive medium-term view of the lithium market by jumping into the Dynamic operation, considering its deep involvement and understanding of the lithium prices. And it is a view that market onlookers are likely to look a little more closely at with spot lithium carbonate prices having been in steep decline for the past year, before flattening out at current levels of US$12,500 (AU$18,469) a tonne.

Dynamic Metals’ portfolio extends beyond Widgiemooltha, with its Deep Well project south-east of Meekatharra, which is highly prospective for nickel and the Lake Percy project, 120km west of Norseman. The Lake Percy play focuses on the northern extension of the Lake Johnston greenstone belt that also hosts the Emily Ann and Maggie Hays nickel mines.

Sitting on a cash pile of $6.5 million and with the potential to be free carried to FID on the back of any large-scale lithium discovery made at Widgiemooltha by an established mining giant, Dynamic appears set to live up to its name.

And the market seemed to agree as the company’s share price rose more than 25 per cent in this morning’s intraday trading on its highest volumes since March to touch a high of 17c.

Is your ASX-listed company doing something interesting? Contact: *****@*****.tld

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#Groundbreaking #MinRes #joins #Dynamic #lithium #hunt

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