Dynamic Metals Ltd largest shareholder Jindalee Lithium Ltd has disposed of its entire stake in Dynamic to a range of sophisticated and high net worth investors raising $2.75 million.
The company was formed through the spin-out by Jindalee of its Australian assets accompanied by a successful $7 million initial public offering (IPO) and listing in January 2023.
This process included a priority entitlement to Jindalee shareholders and left Jindalee as a pure-play US lithium company focused on the 100% owned McDermitt Project, one of the largest lithium deposits in the US and of global significance.
Director purchases
As part of the sale transaction, which was brokered by Argonaut Securities, Dynamic chair Justin Mannolini and non-executive director Lindsay Dudfield demonstrated their confidence in the company by acquiring 500,000 and 700,000 shares respectively.
In a statement, Dynamic said: “The board is grateful to Jindalee for its assistance through the IPO process and for its support as a shareholder during Dynamic’s early years as a listed company and wishes Jindalee all the best as it continues to advance its McDermitt Lithium Project in Oregon USA.”
Dynamic remains focused on the systematic exploration of its extensive landholding in Western Australia, with an immediate focus on the drill testing of the highly prospective Cognac West.
The company is well funded to support its strategy with cash and liquid investments of approximately $5 million.
Aligned with strategy
Jindalee’s CEO Ian Rodger commented "This transaction is firmly aligned with our strategy of advancing McDermitt while preserving shareholder value.
"At a time when many lithium companies are struggling to raise capital, Jindalee’s ability to unlock funding from a non-core asset enables us to accelerate project development in a less dilutive way.
"History shows that projects advanced during downturns are best positioned to capture the upswing, and with lithium prices at unsustainable levels, a supply crunch is inevitable.
"This funding provides us the runway to progress key catalysts — including engagement with potential funding partners and US government agencies, project optimisation, and advancing permitting and community engagement.
"As one of the most advanced sedimentary lithium projects in the US, McDermitt is strategically positioned to benefit from the policy priorities of the new administration as the US moves to secure domestic supply of critical minerals."