Delta Lithium to demerge Mt Ida

In a bid to focus on its lithium assets, Delta Lithium (ASX: DLI) has announced a demerger of its Mt Ida gold assets into a separate entity, Ballard Mining.

The demerger will provide a solid foundation to further advance Delta’s Mt Ida gold project, located 225km from Kalgoorlie in the Eastern Goldfields Province of WA, towards standalone production.

The move will also allow Delta to focus on lithium exploration and development at its Yinetharra and Mt Ida lithium projects whilst maintaining a substantial interest in Ballard Mining and its gold mining activities.

Delta’s managing director James Croser commented that the company has been diligently progressing the Mt Ida gold asset over the last year.

“Now is the time for Delta to separate our commodities and crystalise the value we have created at Mt Ida,” he said.

“Delta will retain a significant shareholding in the new gold company, Ballard Mining.

“It is intended that current Delta shareholders will have the opportunity to participate in the initial public offering of Ballard Mining via a priority offer and an in-specie distribution of shares in Ballard Mining, subject to approval by Delta’s shareholders.

“Importantly for delta, we will retain a substantial shareholding in Ballard Mining on the balance sheet, which provides continued exposure to the all-time high gold prices while focusing on developing its lithium products.”

Delta also announced an updated MRE for the Mt Ida project of 10,340,000t at 3.33 g/t of gold for 1,102,00oz of gold.

The significant MRE update follows an additional 218 drillholes for 44,500m completed at the site and represents significant potential upside for future gold exploration at the project.

Four of the six resources located at Mt Ida stand on granted mining leases, with mining approval received for the Baldock deposit, and hosts majority of the contained gold and will be the primary target for operations.