- 01DYM pays $400,000 for 25% of North East Leases.
- 02Exploration spending could lift its stake to 70%.
- 03Project to join Meentheena in a fluorspar-focused subsidiary.
Dynamic Metals (ASX: DYM) has entered into a binding earn-in and joint venture agreement with private Australian explorer North East Lithium over the North East Leases fluorspar project in north Queensland.
Under the terms, Dynamic will pay $400,000 to acquire an initial 25% interest in the project subject to satisfaction or permitted waiver of the completion conditions, followed by staged exploration expenditure of $850,000 to reach 51% equity, and a further $1.65 million to reach a total 70% equity.
Dynamic intends to combine North East Leases with its Meentheena critical minerals project in Western Australia and associated intellectual property to form a new fluorite-focused subsidiary.
Fluorspar is the principal commercially mined source of fluorine and has been included on the critical minerals list at Geoscience Australia, with fluorine compounds used in lithium-ion batteries, semiconductor manufacturing, and aluminium production.
Dynamic managing director Karen Wellman said North East Leases offered the company a second Australian fluorspar platform with a substantial historical exploration footprint and several areas of known fluorite mineralisation.
Guarantor to Agreement
Unlisted public entity and North East Lithium holding company Boomarra Minerals will be a party to the earn-in and joint venture agreement as guarantor of North East Lithium’s obligations.
Boomarra was demerged in 2022 from advanced mineral processing company Lava Blue, and the vendor group has advised Dynamic that Boomarra has a right to licence mineral processing methods developed by Lava Blue on normal commercial terms.
Lava Blue specialises in the manufacture and development of high-purity alumina processing technology and intends to assess processing options from North East Leases for a range of specialty metals including rare earths, cobalt and molybdenum.
This capability could provide a useful technical interface for evaluating potential downstream value-add pathways for mineral products identified at the project and any future processing, licencing, sample-testing, or offtake arrangement involving Dynamic would be subject to separate technical evaluation and commercial agreement.
Lava Blue has also stated its interest in sourcing mineral samples from Boomarra or Dynamic for research into processing methods.
Early-Stage Opportunity
North East Leases is an early-stage exploration opportunity comprising three granted exploration permits held by North East Lithium and an exploration permit application that will be included in the agreement if granted.
The project has a long history of small-scale fluorite mining and exploration comprising historical workings such as pits, costeans, trenches, stopes, and shafts with mining of some prospects taking place 100 years ago.
Subsequent exploration in the 1970s did not demonstrate an economic resource but did confirm fluorite mineralisation within structurally controlled quartz-rich zones, providing an important foundation for modern reinterpretation, mapping, and targeted follow-up work.
More recent exploration has aimed to confirm the location and character of historical fluorite occurrences, assess the distribution and tenor of fluorite mineralisation and identify areas for more systematic exploration.
Approximately 53 mapped reconnaissance rock chip, rock and grab samples were collected from the Ironclad, Mt Sirius, Moonflight, True Blue, Montgomery, and Big Relief prospects, with calculated results up to 98.8% calcium fluoride equivalent including eight samples grading more than 80% and 15 grading at least 50%.
Eleven vendor-supplied fluorite samples analysed by a specialist fluorite laboratory returned grades of between 62.29% to 96.05% calcium fluoride equivalent, including three results above 90%.
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