Dynamic Metals Unlocks Lady Jane Value With Royalty Kept

Lady Jane Sale Creates Near-Term Value

Dynamic Metals Limited (ASX:DYM) is selling its 100%-owned Lady Jane Gold Project in Western Australia’s Ora Banda district to First Au Limited (ASX:FAU) for consideration of up to A$650,000. The deal gives Dynamic cash up front, a potential later payment and continued exposure to the project through a royalty, without retaining the cost of operating the six exploration licences.

First Au will pay A$50,000 within five business days of signing and A$100,000 at completion. Subject to completion, Dynamic will receive a further A$500,000 around the first anniversary, with the choice of taking that amount in cash or First Au shares. If shares are selected, the issue price will be based on First Au’s 20-day VWAP before the anniversary date and will require any necessary shareholder approval. If approval is not obtained, the deferred amount is payable in cash.

Royalty Preserves Exposure to Exploration Success

The more consequential piece for Dynamic’s longer-term exposure is the retained 1.5% gross revenue royalty over all minerals extracted and sold from Lady Jane. Unlike an ownership interest, the royalty does not leave Dynamic responsible for exploration expenditure, but its value depends on a future discovery progressing through development and into sales.

That future work is not optional under the agreement. First Au must spend at least A$250,000 on direct drilling and directly associated activities within 24 months of completion. The commitment excludes geophysics, surface geochemistry, desktop studies, corporate overheads and general management costs, narrowing the obligation to expenditure capable of testing the project in the ground.

Completion and Reacquisition Conditions

If First Au fails to meet the minimum drilling commitment, Dynamic can elect to reacquire Lady Jane and the associated mining information for A$100,000, subject to the agreement’s terms. That provision gives Dynamic a route back into the asset, although exercising it would require a fresh decision on whether the project had regained strategic value.

The sale is not yet complete. The parties must satisfy or waive customary conditions, including required approvals, consents and arrangements relating to existing third-party agreements, by 5pm Perth time 90 days after execution unless they agree otherwise. For Dynamic, the immediate test is therefore completion and receipt of the initial A$150,000, followed later by the choice between a fixed cash payment and exposure to First Au’s share price.