Dynamic Metals Secures $3.5 Million Gold Asset Sale with Royalty Upside

Dynamic Metals Monetises Non-Core Gold Assets with Corazon Deal

Dynamic Metals Limited (ASX:DYM) has locked in a binding agreement to offload select gold assets within its Widgiemooltha Project to Corazon Mining Limited (ASX:CZN) for a package worth up to $3.5 million plus a 1.5% net smelter return royalty. The transaction marks a strategic move by Dynamic to sharpen its portfolio focus and inject immediate capital while preserving exposure to future exploration upside.

Corazon will acquire full ownership of exploration licence E15/1802 and gain exclusive rights to explore and develop gold on licences E15/1705 and E15/1721. Dynamic will receive $500,000 in cash and $1 million in Corazon shares upfront, with the latter subject to a six-month voluntary escrow. The share count will be set using Corazon’s 30-day volume weighted average price prior to the announcement.

Deferred Milestones and Royalty Maintain Future Leverage

Dynamic is also positioned to earn two deferred cash payments of $1 million each, triggered by Corazon reporting JORC-compliant Mineral Resource Estimates of 150,000 ounces and 300,000 ounces of gold respectively, both at minimum grades of 0.5g/t Au. These milestones provide a clear incentive for Corazon to advance exploration aggressively.

Beyond milestone payments, Dynamic retains a 1.5% net smelter return royalty on all gold extracted from the tenements, ensuring ongoing participation in any production success. This layered deal structure balances immediate value with long-term exposure, a hallmark of Dynamic’s disciplined portfolio management approach.

Lithium Rights and Existing Agreements Remain Intact

Importantly, the transaction does not impact Dynamic’s existing lithium mineral rights over E15/1705 and E15/1721, which are held under agreements with Mineral Resources Limited (ASX:MIN). Dynamic retains all rights outside the granted gold rights, preserving its stake in lithium potential within the same licences.

Completion is contingent on standard conditions, including Corazon’s legal and technical due diligence, regulatory approvals, and execution of royalty and rights sharing deeds. These must be satisfied or waived within 60 days of the agreement signing, with final completion expected shortly thereafter.

Strategic Implications for Dynamic Metals

Dynamic’s Managing Director Karen Wellman highlighted the deal’s dual benefit: immediate cash and equity injection alongside retained upside through milestones and royalties. This transaction dovetails with Dynamic’s broader strategy to unlock value by partnering with focused operators, allowing the company to concentrate resources on its core projects.

Dynamic’s Widgiemooltha tenure, spanning some 800 square kilometres in a historically prolific gold and nickel region of Western Australia, remains a significant asset base. The divestment of non-core gold rights to Corazon complements ongoing exploration efforts, including recent advances at Cognac West and Meentheena, where Dynamic has been progressing drilling programs and environmental approvals.