Dynamic Metals Ltd. has agreed to sell its Lady Jane gold project in Western Australia’s Eastern Goldfields to junior explorer First Au Ltd. for AU$650,000 in cash and deferred consideration.
Lady Jane comprises six granted exploration licences covering prospective Archean greenstone geology. The tenements sit at the convergence of the Zuleika Shear and Ida Fault, near Ora Banda Mining’s Davyhurst processing operations and its Riverina and Sand King underground mines.
Under the agreement structure, First Au will pay Dynamic AU$50,000 upon execution and AU$100,000 at completion. On the first anniversary of completion, First Au will deliver AU$500,000 in deferred consideration, payable in either cash or First Au shares at Dynamic’s sole election.
Dynamic will also retain a 1.5 per cent gross revenue royalty over all minerals extracted and sold from the project. Furthermore, First Au has committed to a minimum direct drilling expenditure of AU$250,000 across the tenure within 24 months of completion.
Dynamic Metals Managing Director Karen Wellman said the divestment aligns with the company’s portfolio management approach to release value from non-core assets while keeping upside exposure through royalties.
“Importantly, First Au has committed to drilling the project, allowing Lady Jane to continue to be actively explored without further funding from Dynamic,” Wellman said.
For First Au, the acquisition directly expands its adjacent Riverina East footprint in a proven gold corridor, leveraging prior field datasets, including soil sampling and geological mapping compiled by Dynamic, to accelerate target generation.
First Au Executive Chairman Daniel Raihani described the deal as a natural extension of the company’s core asset portfolio.
“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,” Raihani said.
“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.”
Completion of the transaction remains subject to standard third-party consents and regulatory approvals.
