Highlights

• Dynamic Metals has entered a binding agreement to acquire an initial 25% interest in the North East Leases Fluorspar Project in north Queensland for AUD 400,000 in cash, with a staged earn-in pathway to 70% through AUD 2.5 million in exploration expenditure.

• Historic reconnaissance sampling across the project has returned calculated results up to 98.8% calcium fluoride equivalent, with 8 of 53 selective surface samples returning at least 80% CaF2 equivalent across multiple prospects.

• Specialist fluorite laboratory analysis of 11 vendor-supplied samples returned direct CaF2 determinations of 62.3% to 96.1%, including three results above 90% CaF2.

• Dynamic intends to combine the North East Leases Project with its Meentheena Fluorspar Project in Western Australia into a new fluorite-focused subsidiary, providing a vehicle for future partnerships and development funding.

Dynamic Metals Limited (ASX:DYM), an ASX-listed precious and critical metals exploration company, has announced a binding earn-in and joint venture agreement with unlisted Australian company North East Lithium Pty Ltd in relation to the North East Leases Fluorspar Project in north Queensland. The transaction provides Dynamic with an initial 25% interest in the project, subject to completion conditions, and a structured pathway to earn up to 70% through staged exploration expenditure over a four-year period.

Project History and Recent Exploration Results

The North East Leases Project is located west of Mt Garnet and north of Mt Surprise in north Queensland and has a documented history of small-scale fluorite Mining and exploration dating back approximately 80 to 100 years. Numerous historical workings including pits, costeans, trenches, stopes, and shafts are present across the tenure, and early 1970s exploration confirmed fluorite mineralisation within structurally controlled quartz-rich zones. While historical work did not demonstrate an economic resource, it established the presence and character of fluorite mineralisation across multiple prospects.

Recent exploration by the vendors in 2024 and 2025 included field reconnaissance, geological mapping, inspection of historical workings, and selective surface sampling. A combined dataset of 53 mapped reconnaissance rock chip and grab samples returned calculated calcium fluoride equivalent results ranging up to 98.8%, with 8 samples returning at least 80% CaF2 equivalent and 15 samples returning at least 50% CaF2 equivalent. Elevated results were documented across multiple prospects including Ironclad, Mt Sirius, Moonflight, True Blue, Montgomery, and Big Relief. Separately, 11 vendor-supplied fluorite samples analysed by a specialist fluorite laboratory using wet-chemical methods returned direct CaF2 determinations from 62.3% to 96.1%, including three above 90%.

Transaction Structure and Downstream Value-Add Opportunity

The earn-in and joint venture agreement is structured across two stages. The initial AUD 400,000 cash consideration — comprising an immediate AUD 50,000 non-refundable deposit upon execution and AUD 350,000 at completion — delivers a 25% interest. Stage 1 requires AUD 850,000 of eligible exploration expenditure within two years of completion to earn an additional 26%, reaching 51%. Stage 2 requires a further AUD 1.65 million within four years of completion for an additional 19%, reaching 70%. Completion is conditional on due diligence, required approvals, and ministerial consent for the initial interest transfer.

An additional dimension of the transaction is the relationship with Lava Blue Ltd, an unlisted Australian company that was demerged from the guarantor entity Boomarra Minerals Ltd. Lava Blue's core Business is the manufacture and development of high-purity alumina processing technology, and the vendor group has advised that Lava Blue is also assessing processing Options for a range of specialty metals, including rare earths, cobalt, and molybdenum. Dynamic has indicated that this downstream technical capability may provide a useful interface for evaluating potential value-add pathways for fluorspar products identified at the project, though any future processing arrangement would be subject to separate technical evaluation and commercial agreement.

Strategic Context and Multi-Commodity Potential

Fluorite mineralisation at the North East Leases Project occurs within the Elizabeth Creek Granite, associated with structurally controlled brecciated faults and epithermal quartz-fluorite veins. The mineralisation is generally steeply dipping with multiple parallel to sub-parallel structures observed across the project area. Dynamic has noted that in addition to fluorite, the project contains a broad range of recorded and interpreted mineral occurrences including tungsten, tin, molybdenum, copper, gold, lead, and beryl, associated with multiple mineralised systems. While the initial focus is on evaluating fluorspar potential, this broader multi-commodity context may provide additional exploration opportunities as the geological understanding of the project develops.

Dynamic intends to combine the North East Leases Project with its Meentheena Fluorspar Project in Western Australia into a new fluorite-focused Subsidiary that will provide a vehicle for future partnerships, development funding, and Capital market activities. This consolidation reflects the company's strategy of building critical minerals platforms rather than managing isolated individual projects. The growing global Demand for fluorine compounds in lithium-ion batteries, semiconductor manufacturing, and aluminium production underpins the strategic rationale for the company's fluorspar accumulation strategy.

Key Insights

The Acquisition of an option over the North East Leases Project gives Dynamic Metals a second Australian fluorspar platform at a modest initial cash outlay, with the ability to increase its interest in a staged and disciplined manner as the geological case develops. The high-grade fluorite results from reconnaissance sampling are encouraging, though the company has appropriately noted that systematic follow-up work is required to establish the continuity, true widths, and economic significance of the mineralisation.

The intended combination of the North East Leases and Meentheena projects into a fluorite-focused subsidiary is a sensible strategic step that could improve the group's profile with sector-focused investors and potential commercial partners. The Lava Blue downstream processing relationship adds an interesting long-term optionality dimension, though any commercial arrangements remain subject to separate negotiation.