Reach Resources Secures $800,000 from Sale of Lithium Assets to Delta Lithium
Reach Resources has bolstered its war chest by $800,000 through the sale of non-core lithium assets to Delta Lithium, receiving half in cash and half in shares. This deal terminates their joint venture, cutting future holding costs and sharpening focus on the Murchison South gold project.
- Sale of non-core assets nets $800,000
- Half payment in cash, half in Delta Lithium shares
- Joint venture with Delta Lithium terminated
- Eliminates ongoing holding costs for Reach
- Funding boost complements recent $6 million capital raise
Strategic Divestment Strengthens Reach’s Balance Sheet
Reach Resources Limited (ASX:RR1) has secured an additional $800,000 from selling a package of non-core lithium assets to Delta Lithium (ASX:DLI). The consideration is split evenly between $400,000 in cash and $400,000 in fully paid shares in Delta Lithium, calculated using a 30-day volume-weighted average price prior to the deal's execution on 15 June 2026.
This transaction brings a clean break from the previous earn-in and joint venture agreement with Delta Lithium, which will be terminated upon completion. Both parties will be released from all claims and obligations related to these assets, effectively shedding Reach’s future expenditure commitments and holding costs tied to these tenements.
Non-Core Lithium Assets Offloaded
The assets sold include several granted and pending tenements in the Murchison region, notably the Morrissey Hill and Camel Hill Lithium Projects. These tenements, held by Reach and its subsidiary Critical Elements Pty Ltd, have expiry dates ranging from 2026 to 2031. Pending applications will transfer to Delta Lithium, which will assume responsibility for their prosecution and registration.
CEO Jeremy Bower highlighted the multiple benefits of this divestment, pointing to the immediate cash injection, strategic exposure to Delta Lithium’s upside through shareholding, and the elimination of ongoing holding costs. "Combined with the $6 million received via recent capital raises, the Company is very well-funded to accelerate work at Murchison South and pursue additional opportunities with confidence," he said.
Funding Positioned for Murchison South Acceleration
This $800,000 inflow complements the roughly $6 million raised recently through placements, shortfall shares, and option fees, reinforcing Reach’s financial position. The company has been actively advancing its Murchison South gold project, including securing fully funded mining deals and expanding gold resources, as detailed in recent announcements.
By shedding non-core lithium assets, Reach is streamlining its portfolio to focus on its core gold development strategy, reducing overheads and capital commitments. The shareholding in Delta Lithium also keeps a foot in the lithium sector, allowing Reach to benefit from any future appreciation without the burden of direct asset management.
Bottom Line?
Reach’s asset sale sharpens its focus and funding for Murchison South while maintaining lithium exposure via Delta shares.
Questions in the middle?
- How will Delta Lithium’s share price performance impact Reach’s investment value?
- What are the timelines for tenement transfers and regulatory approvals following the sale?
- Will Reach pursue further divestments to concentrate capital on gold projects?
