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Highlights
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Delta Lithium to separate Mt Ida Gold Project into new gold-focused entity Ballard Mining
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Demerger includes IPO led by Bell Potter Securities and Argonaut, with legal support from Thomson Geer
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Shareholders to receive Ballard shares through an in-specie distribution linked to existing Delta holdings
Delta Lithium Ltd (ASX:DLI), a resource sector company on the ASX 200 index, is moving to separate its gold and lithium operations through the demerger of its Mt Ida Gold Project. The project, situated in Western Australia, is being carved out into a newly established entity named Ballard Mining, which is intended to be listed independently on the Australian Securities Exchange.
This corporate restructuring remains subject to shareholder and regulatory approvals. However, binding documentation has been executed, marking a formal commitment to transferring all ownership, entitlements, and interests related to the Mt Ida Gold asset into Ballard.
New IPO to Launch Ballard Mining on ASX
The demerger strategy includes an initial public offering for Ballard Mining. This offer, to be coordinated by joint lead managers Bell Potter Securities and Argonaut, will also involve support from Thomson Geer in the legal advisory role. The IPO aims to establish Ballard as a standalone gold-focused company on the ASX.
In conjunction with the listing, Delta Lithium plans an in-specie distribution of Ballard shares to existing shareholders, linked proportionally to current Delta holdings. Following the IPO, Delta is expected to retain a significant minority stake in Ballard, dependent on the final scale of capital raised during the offering.
Focus to Shift Solely on Lithium Development
This strategic move enables Delta Lithium to concentrate on advancing its lithium portfolio, particularly the Mt Ida and Yinnetharra Lithium Projects, both located within Western Australia. By separating its gold interests, the company intends to streamline its operations and direct resources exclusively toward lithium asset development.
The Mt Ida Gold Project currently holds a significant indicated and inferred resource and is situated within the Mt Ida-Ularring Greenstone Belt. This area is known for its mineral-rich formations and spans a considerable stretch of land within the Eastern Goldfields Province.
Ballard to Drive Gold Asset Development Independently
Delta Lithium views the creation of Ballard Mining as an effective step to scale up gold operations independently. With dedicated management and funding, Ballard is expected to drive the development of Mt Ida's gold resource base more efficiently than under Delta's diversified operational model.
The demerger is being timed during favorable commodity pricing trends in the gold sector. Company executives have highlighted the market's readiness for a standalone gold venture, aligning with the current value dynamics observed in precious metals.
Timeline and Project Scope
Pending necessary approvals, Delta anticipates the demerger process and IPO to reach completion by early in the upcoming financial quarter. The Mt Ida Project is described as a near-ready operation, integrating both lithium and gold deposits across a substantial landholding west of Leonora.
By creating Ballard, Delta Lithium intends to streamline corporate focus while establishing a new participant in Australia's gold mining segment. This development contributes to reshaping the composition of ASX 200 resource listings, as companies increasingly specialize to enhance operational efficiency and sector alignment.
