Dynamic Metals sells Lady Jane gold project to First Au for $650,000

• Dynamic to receive $650,000 in cash and deferred consideration over 12 months
• Dynamic will retain a 1.5% gross revenue royalty (GRR) over all minerals extracted and sold
• Strategic move boosts First Au’s Eastern Goldfields plans
• First Au has committed to a minimum of $250,000 direct drilling expenditure within 24 months

Dynamic Metals (ASX: DYM) has entered into a binding tenement sale and purchase agreement with First Au (ASX: FAU) for the sale of the Lady Jane gold project in WA.

Lady Jane comprises six granted exploration licenses located in the Ora Banda district.

Dynamic’s MD, Karen Wellman, said the transaction is consistent with Dynamic’s strategy of actively managing its exploration portfolio, realising value from non-core assets while retaining exposure to future exploration success.

“The sale of Lady Jane provides an opportunity for Dynamic to realise value from a non-core part of our portfolio while retaining exposure to future success through the royalty.

“Importantly, First Au has committed to drilling the project, allowing Lady Jane to continue to be actively explored without further funding from Dynamic.

“The transaction further demonstrates our strategy of actively managing the portfolio and directing our capital towards the opportunities where we believe it can have the greatest impact.”

Lady Jane is located proximal to Ora Banda Mining’s (ASX: OBM) Davyhurst gold operations, including the Riverina and Sand King underground mines and the Davyhurst processing facility, as well as the Paradigm and Missouri deposits.

Recent field activities by DYM across the Lady Jane tenure, including soil sampling and geological mapping, provide First Au with an established exploration dataset and identified target areas for follow-up work.

“The acquisition of Lady Jane is a natural extension of our Riverina East project and strengthens our position in one of the Eastern Goldfields’ most active gold corridors,” First Au’s executive chairman, Daniel Raihani, said.

“The project sits within the same structural setting that hosts Ora Banda Mining’s Riverina and Sand King underground operations, and the dataset generated by DYM’s recent fieldwork gives us a strong foundation to move quickly on target generation and follow-up drilling.

“Our approach remains consistent: disciplined capital allocation, growing tenure in proven gold districts proximal to processing infrastructure and where we can add value through targeted exploration. The deferred consideration structure preserves our balance sheet flexibility while committing us to meaningful on-ground work within the first 24 months.”

The sale consideration comprises $50,000 payable within five business days of execution and $100,000 payable at completion.

Subject to completion occurring, a further $500,000 is payable around the first anniversary of completion. Dynamic has the sole discretion to elect to receive this deferred consideration as either $500,000 cash or $500,000 worth of First Au shares.

DYM was steady at 60.0¢ with a Mkt cap of $31.48M prior to markets opening.

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