Delta Lithium’s Gold Spin-Off and Lithium Growth Pose New Strategic Challenges

• Successful demerger and IPO of Mt Ida Gold asset into Ballard Mining
• Ballard raised $30 million with oversubscribed IPO, Delta retains 46% stake
• Delta’s lithium tenure expanded to over 3,100 km² with Aston and Mortimer Hills acquisitions
• Yinnetharra Lithium and Tantalum Project Mineral Resource Estimate updated
• Exploration activities underway with drilling planned next quarter

Strategic Spin-Out Unlocks Gold Asset Value

Delta Lithium Limited has taken a decisive step to sharpen its strategic focus by successfully spinning out its Mt Ida Gold asset into a new, standalone entity, Ballard Mining Limited. The demerger, followed by an oversubscribed IPO raising $30 million, has unlocked significant value for Delta shareholders. Eligible shareholders received Ballard shares in proportion to their Delta holdings, effectively crystallizing $16 million in capital return while maintaining exposure to the gold project’s upside through a substantial 46% stake retained by Delta.

Located in Western Australia’s prolific Eastern Goldfields, the Mt Ida Gold Project boasts a robust updated mineral resource estimate of 10.3 million tonnes at 3.33 grams per tonne gold, equating to over 1.1 million ounces. This sizeable resource underpins Ballard’s focused exploration and development ambitions, supported by a seasoned leadership team including Delta’s Managing Director, James Croser, who now serves as a non-executive director on Ballard’s board.

Lithium Portfolio Expansion Strengthens Core Focus

With the gold asset now operating independently, Delta Lithium has intensified its commitment to its lithium portfolio, notably the Yinnetharra Lithium and Tantalum Project in Western Australia’s Gascoyne region. The company has nearly doubled its landholding through the acquisitions of the Aston Project from Minerals 260 and the Mortimer Hills Project from Zeus Resources, expanding its tenure to over 3,100 square kilometres. These additions are strategically contiguous to existing deposits such as Malinda and Jamesons, enhancing exploration synergies along a highly prospective geological corridor.

The Yinnetharra project’s updated mineral resource estimate stands at 21.9 million tonnes at 1.0% lithium oxide and 39.4 million tonnes at 102 parts per million tantalum pentoxide, reflecting a significant resource base for future development. Systematic exploration activities are underway, including geochemical sampling and mapping, with heritage clearances progressing to enable a planned drilling campaign next quarter targeting key prospects.

Financial Position and Outlook

Delta ended the quarter with a strong cash position of $58.5 million and listed investments valued at $1.75 million, bolstered by the value crystallized from the Ballard IPO. Exploration and evaluation expenditure for the quarter was $4.487 million, reflecting active advancement of its lithium assets. The company’s strategic restructuring not only unlocks value but also positions Delta to capitalize on the growing demand for lithium, a critical component in the global transition to clean energy technologies.

Looking ahead, Delta’s focus will be on advancing its lithium projects through targeted exploration and resource growth, while monitoring Ballard Mining’s progress in developing the Mt Ida Gold Project. The dual-company structure offers investors clear exposure to both gold and lithium markets, each with dedicated management and capital resources.

Bottom Line?

Delta Lithium’s strategic spin-out and lithium expansion mark a pivotal moment, setting the stage for focused growth in two distinct mineral sectors.

Questions in the middle?

• How will Ballard Mining’s exploration results impact Delta’s retained stake valuation?
• What are the timelines and capital requirements for advancing Yinnetharra’s lithium resources to production?
• Could further acquisitions or joint ventures accelerate Delta’s lithium project development?