Key points
- Dynamic Metals to sell Lady Jane Gold Project to First Au Limited.
- Sale includes $650,000 cash and deferred consideration.
- Dynamic retains 1.5% gross revenue royalty on extracted minerals.
Full summary
Dynamic Metals Limited (ASX: DYM) has entered into a binding Tenement Sale and Purchase Agreement with First Au Limited (ASX: FAU) for the sale of its 100%-owned Lady Jane Gold Project in Western Australia. The transaction includes A$50,000 cash within five business days of execution, A$100,000 at completion, and A$500,000 deferred consideration payable around the first anniversary of completion, which Dynamic can elect to receive in cash or First Au shares. Dynamic will retain a 1.5% gross revenue royalty on all minerals extracted and sold from the project, ensuring ongoing exposure to future exploration and development success. First Au has committed to a minimum of $250,000 direct drilling expenditure on the project within 24 months of completion.