JV Projects
The Company has an active strategy as a project generator and incubator. Under this strategy, the Company identifies prospective tenure (based on location, geology, known geochemistry and other measures) and then progresses the project through smart exploration processes. At the appropriate time, the Company makes the decision as to whether to continue funding the project or advance it via external JV funding.
A key feature of Dynamic Metals’ joint ventures is that the Company is free carried through to a major value adding event, such as a Decision to Mine or Bankable Feasibility Study.
This provides Dynamic shareholders ongoing interest in the projects without having to contribute to funding. By having multiple parties funding the various projects, it accelerates the time to progress the projects with a combined spend that is significantly more than Dynamic could spend in its own right.
Widgiemooltha Joint Venture
A JV & Farm-In agreement with Mineral Resources (ASX:MIN) (MinRes) has been executed for 40% lithium rights for $5m cash consideration (stage 1) with MinRes to increase stake to 65% by sole funding $15m exploration over 4 years. MinRes has further ability to increase its stake to 80% by sole funding expenditure through to a Decision to Mine.
The Widgiemooltha Lithium Project is located in an emerging lithium belt, within the lithium “Goldilocks Zone” and directly adjacent to the Develop Pioneer Dome lithium project and Sinclair LCT mine.
MinRes to continue lithium exploration under the lithium focused JV.
The nearby location of the Bald Hill mine, operated by MinRes, offers a pathway to production for any lithium discoveries.
Prospect Ridge Joint Venture
The Prospect Ridge Magnesite project area is located in northwest Tasmania, 40 km southwest of the Port of Burnie. It sits upon a granted Exploration Licence (EL5/2016), it is 11 km long and 51 km2 in area and contains two magnesite deposits, the Arthur River and Lyons River deposits containing the third largest Magnesite inventory in Australia.
Key terms of some of the active Dynamic joint ventures
| Project | Commodity | Company | DYM Interest | |
| Deep Well | Nickel-Copper-PGE | M61 Holdings Pty Ltd | 80% |
Tenements under Joint Venture are E51/1977, E51/2073 |
| Widgiemooltha | Lithium | Mineral Resources Limited | 60% |
Mineral Resources (ASX:MIN) holds a 40% interest on Widgiemooltha lithium rights with the ability to increase its stake to 65% by sole funding an additional $15 million of exploration expenditure on the tenements over the next four years. MinRes has further ability to elect to increase its stake to 80% by sole funding expenditure through to a Decision to Mine. If MinRes elects to increase its stake in the JV, Dynamic is free carried to a Decision to Mine. |
| Prospect Ridge | Magnesite | GWR Group | 30% |
GWR Group (ASX:GWR) holds a 70% interest. Dynamic’s 30% interest will be free carried through to a decision to mine. Tenements under Joint Venture are EL5/2016 Recent Announcements: |
| Bundie Bore | Gold | Voltaic Strategic Resources Limited | 20% |
Voltaic Resources Limited (ASX:VSR) have an 80% interest. Dynamic’s 20% interest will be free carried until completion of a BFS. Recent Announcements: |