Dynamic Metals Limited (ASX:DYM) has entered into a binding earn-in and joint venture agreement with North East Lithium Pty Ltd to acquire an initial 25% interest in the North East Leases Project in north Queensland, with the right to progressively increase its interest to 70% through staged exploration expenditure.

Key Points

  • Binding agreement to acquire an initial 25% interest in the North East Leases Project, with the right to earn up to 70%, subject to due diligence and required approvals.
  • Total cash consideration of A$400,000 for the initial 25% interest, followed by staged exploration expenditure of A$850,000 to reach 51% and a further A$1.65 million to reach 70%.
  • Reconnaissance sampling dataset comprises 53 mapped surface samples with calculated results up to 98.8% CaF₂ equivalent; eight selective samples returned at least 80% CaF₂ equivalent.
  • Eleven vendor-supplied fluorite samples analysed by a specialist laboratory returned 62.29% to 96.05% CaF₂, including three results above 90% CaF₂.
  • Dynamic intends to combine the North East Leases Project with its Meentheena Project in Western Australia into a new fluorite-focused subsidiary.

North East Leases Project Location and Tenure

The North East Leases Project is located west of Mt Garnet and north of Mt Surprise in north Queensland. It comprises three granted exploration permits held by North East Lithium Pty Ltd, together with one exploration permit application, designated EPM 29259. If granted, the resulting permit will be included in the arrangements, with transfer of Dynamic's initial interest subject to the required Ministerial consent. The grant of the application is not a condition to completing the initial acquisition over the granted tenure. The company's initial assessment will focus on the Project's fluorspar potential.

Sampling Results Across Multiple Prospects

Recent exploration work completed during 2024 and 2025 included reconnaissance sampling around historical workings. The combined dataset comprises 53 mapped surface samples with calculated results up to 98.8% CaF₂ equivalent. High CaF₂ equivalent results were recorded at multiple prospects, including Ironclad, Mt Sirius, Moonflight, True Blue, Montgomery and Big Relief. Eleven vendor-supplied fluorite samples analysed by a specialist fluorite laboratory returned results ranging from 62.29% to 96.05% CaF₂, with three results above 90% CaF₂. The filing notes the samples are selective surface samples and that further assessment is required to establish scale, continuity and economic significance.

Transaction Structure and Downstream Capability

The agreement is with North East Lithium Pty Ltd, with Boomarra Minerals Ltd acting as guarantor of NEL's obligations. Boomarra was demerged in December 2022 from Lava Blue Ltd, an unlisted Australian company whose core business is the manufacture and development of high-purity alumina processing technology. The vendor group has advised Dynamic that Boomarra holds a right to license mineral processing methods developed by Lava Blue on normal commercial terms, and that Lava Blue is interested in sourcing mineral samples for processing research. Any future processing, licensing, sample-testing or offtake arrangement involving Dynamic would be subject to separate technical evaluation and commercial agreement.