DLI spins out Mt Ida
Delta's Mt Ida asset will be spun out via a demerger and concurrent IPO
A new, standalone and gold focused ASX-lister will be formed, named Ballard Mining
Delta will retain upside exposure to Ballard through a substantial equity holding in Ballard
As part of the proposed spin-out, eligible Delta Lithium (ASX:DLI) shareholders will receive one fully paid Ballard share for every 11.25 Delta shares they own, retaining exposure to the Mt Ida asset through an in-specie distribution.
Ballard intends to conduct an initial public offering, targeting a raise of $25-30 million at 25c per share, to facilitate its proposed admission to the ASX official list.
Following the demerger and successful IPO, Delta will maintain a significant interest in Ballard— roughly 49% at the minimum raise, and 46% at the maximum.
The spin out paves the way for DLI to continue focusing on its primary business, being the exploration and development of its lithium assets at Mt Ida and Yinnetharra in WA.
Potential for a standalone mining operation
The decision follows an update to the inferred and indicated resource at the Mt Ida asset, now totalling 10.3Mt at 3.33g/t gold for 1.1Moz, significantly increasing the project's gold inventory and demonstrating the presence of a large system.
DLI said the update represented significant potential upside for future exploration across the 250km2 Mt Ida tenement package (including pending tenure) and another 1,300km2 for water exploration.
In light of its scale and viability as a standalone mining operation, Delta determined it was the right move to spin off the asset, a decision which comes at a time when lithium prices are depressed but gold prices are near record highs at close to A$5000/oz.
Delta will remain as a lithium focused exploration and development company and will retain Delta's balance sheet strength by maintaining a significant shareholding in Ballard post demerger.
Upon successful ASX admission, Ballard will allocate IPO funds to accelerate exploration at Mt Ida, including regional drilling and infill work at Baldock, aimed at completing DFS studies and progressing toward a final investment decision.
Ballard, named after Lake Ballard – a local landmark in WA's Shire of Menzies famed for hosting the Gormley sculptures – will hold the gold asset through its shareholding in Mt Ida AU Pty Ltd, which will be a wholly owned subsidiary of Ballard.
'Opportune time in the gold price cycle'
DLI managing director James Croser believes that the separation of the lithium and gold assets will create greater value for shareholders of both Delta and Ballard by enabling direct participation in the growth of the gold asset through an independent vehicle.
"Delta has been working diligently towards this outcome for some time, and we are delighted to be finally able to announce these details of the demerger and Ballard IPO,' he said.
'Re-setting the exciting and prospective Mt Ida gold asset into Ballard, a pure new gold company, at such an opportune time in the gold price cycle best positions Ballard to launch into early success, underpinned by a strong foundation of 1.1Moz gold and a new dedicated and specialised management team.
'Momentum is crucial to a new listing and the pricing of the gold asset is compelling with significant potential to create investor returns and shareholder value.'
Forecasters continuing to tip higher levels for gold, despite a recent pullback from an apparent normalisation of trade relations between the US and China.
By way of example, State Street Global Advisors says 'there is a strong tactical and strategic case to be made that the gold market has transitioned to a higher price regime north of US$3000/oz.'
They've loaded up a new baseline floor price of US$3000-3100/oz, with a base case of US$3100-3500/oz for 2025.
Their H2 bull case has been upgraded, with new projections ranging between US$3500 and US$3900 per ounce.
Looking ahead
If approved by shareholders, the demerger is expected to be completed by early July 2025.
Ballard has secured a high-calibre and experienced team with extensive experience in mineral exploration, project development, mining and financing in the resources industry.
The team includes a combination of existing Delta directors and new appointments, including two independent non-executive directors with suitable technical expertise.
The Ballard board and senior management comprises previous De Grey (ASX:DEG) chairman Simon Lill as independent non-executive chairman, Paul Brennan as managing director and CEO and former Ramelius Resources (ASX:RMS) CFO Tim Manners as finance director.
Proposed chairman Simon Lill said Delta has done an excellent job in preparing Ballard for a spin out on behalf of its shareholders through IPO.
'I was pleasantly surprised with the substantial exploration upside at the Mt Ida gold project,' he said.
'With multiple walk-up targets over a largely untested 16km of trend, the opportunity to find another Baldock with its 930,000oz at 4.1g/t Au is real with the potential to grow into a camp-scale endowment.'
This article was developed in collaboration with Delta Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


West Australian
3 hours ago
- West Australian
WA to be thunderstruck as AC/DC, Ed Sheeran, Ashes and WWE head to town from September
Bryan Adams might well claim the summer of '69 as the greatest, the summer of 2025 in WA is shaping as one to remember for sporting and musical diehards. AC/DC, Metallica, Ed Sheeran, the Ashes, and WWE are just some of the events scheduled for Optus Stadium and RAC Arena from September through to the end of January. Tourism representatives and the State Government this week salivated at the potential economic and social spinoffs to WA because the events. 'We want WA to remain the strongest economy in the nation. That's why we're diversifying our economy for the future by bringing big-name events to Perth that will attract thousands of visitors and pump millions into the local economy,' Acting Premier Rita Saffioti said. 'For every dollar spent on these events, we have a return of $3.50 — that's money going straight into the pockets of WA businesses. 'Importantly, these events put us on the global stage, positioning WA as an event destination. 'WA's summer of entertainment is going to be huge — and with a great line up to look forward to, there's something for everyone.' Optus Stadium chief executive Mike McKenna said the venue was preparing for its biggest ever summer, which followed its biggest ever month in June. 'From October to March, Optus Stadium will host concerts featuring three huge acts, the return of the blockbuster Bledisloe Cup, the hotly anticipated first Test of the NRMA Insurance Men's Ashes series, a One Day International between Australia and India and another big BBL season,' he said. 'Before the 2026 winter AFL season commences, the AFC Asian Women's Cup kicks off with the opening game at the Stadium, along with a semi final match.' Mr McKenna said Optus would stage some massive concerts in coming months. 'The stadium will transition to concert mode when heavy metal band Metallica brings their signature sound on November 1 as part of the M72 World Tour, with special guests Evanescence and Suicidal Tendencies,' Mr McKenna said. 'This will be Metallica's first visit to Australia in a decade and tickets have already sold out. 'AC/DC will then bring their global Power Up tour to the stadium . . . delivering a career spanning setlist packed with iconic anthems like Stadium favourite Thunderstruck. 'As soon as the BBL season ends, we will welcome global singer-songwriter Ed Sheeran back to Optus Stadium for the third time on January 31, 2026, as part of the Loop Tour.' Tourism WA managing director Anneke Brown said .enticing big events to Perth was part of 'a plan to grow the WA tourism sector'. 'Events are a key part of our plan to grow the WA tourism sector, as they drive bookings to our Dream State, add vibrancy to a destination and drive awareness of Western Australia as an incredible holiday and events destination through media coverage,' she said. Tourism Council WA boss Evan Hall said not all events were money spinners, but some were big economic boons for the State. 'For every 1000 interstate fans we entice to WA for major tourism events we create an additional $2.5M in the economy creating more than 15 jobs,' he said.

News.com.au
7 hours ago
- News.com.au
Mount Waverley home stuns with $2.33m auction result
A Mount Waverley home has fetched $2.33m after a six-way bidding war — smashing reserve by $280,000 — as desperate downsizers beat out younger families for one of the suburb's only move-in ready homes this weekend. The single-level four-bedroom home at 38 Windsor Ave, was one of 16 properties to go under the hammer in the prized school zone on Saturday, but stood alone in offering a fully renovated, single storey move-in-ready lifestyle with pool, alfresco deck and luxe interiors. Heavyside Boroondara auctioneer Steven Zervas said the campaign drew more than 80 inspections, with 30 people attending the auction and six active bidders vying for the keys. Where Melb homes sell in 22 days 'Bidding opened at $1.9m, right at the bottom of the guide, and once it hit the $2.05m reserve it just didn't stop,' Mr Zervas said. 'We had really strong depth and competitive energy.' Mr Zervas said the eventual buyers, a semi-retired couple who had been renting just around the corner after relocating from the UK had already missed out on two properties and weren't going to let this one go. 'The underbidders were also downsizers, and they were gutted,' he said. 'The rest of the competition came from younger families who were just as keen, this was a home that really crossed demographics.' Featuring a deluxe kitchen with dual ovens, multiple living zones, a designer ensuite, and a seamless indoor-outdoor layout anchored by a salt-chlorinated pool, the home was marketed as a luxury family entertainer with zero renovation required. 'This was the only turnkey house on the market this weekend,' Mr Zervas said. 'Everything else that went to auction for this type of asset was a unit, townhouse or a knockdown.' Mr Zervas said the result showed strong demand from buyers with 'zero appetite' for major renovations, especially among those chasing access to Mount Waverley Secondary College, Avila, Huntingtower and Wesley. 'With school enrolments on parents' minds, people are planning now, not waiting for spring,' he said. 'August and September are sweet spots. 'Once spring hits, your home could be one of 30 auctions on the same day.'

ABC News
8 hours ago
- ABC News
Australian Army's new Precision Strike Missile fired at NT's Mount Bundey during Exercise Talisman Sabre
The Australian Army has test fired its newest long-range missile for the first time, launching the weapon from a remote army training base in the Northern Territory. The Precision Strike Missile (PrSM), which can hit distant targets with minimal warning and high accuracy, was fired from the Mount Bundey Training Area, south-east of Darwin, on Friday. It hit its target over 300 kilometres away in four minutes and three seconds, reaching speeds of roughly 4,050 kilometres per hour — more than three times the speed of sound. Fired from US-made High Mobility Artillery Rocket Systems (HIMARS), the PrSM can strike targets at distances of up to 500 kilometres with precision — a significant leap from the Australian Army's previous long-range strike range of just 30 kilometres. At a press conference at Mount Bundey on Friday, Defence Industry Minister Pat Conroy said the new weapon marked the day the "Australian Army enters the missile age". "This is all about extending deterrence in the Indo-Pacific, all about signalling to any potential adversary that pain can be inflicted — all about deterring war through strength," he said. Developed for the United States Army, the PrSM was sent to Australia last month as part of a $310 million deal with the US. The deal locks in Australian access to munitions, technological advancements and the option for future domestic manufacturing and maintenance. The missile launch was conducted as part of Exercise Talisman Sabre, a joint military exercise involving more than 40,000 military personnel from 19 nations, including the US. This year marks the largest iteration of the exercise since it began in 2005 as a way to practice maritime operations, air combat and live-fire exercises with international partners. On Friday, the Secretary of the United States Army, Dan Driscoll, was more forthright in his assessment of where the message of deterrence was aimed at. "President Trump, [the United States Secretary of Defence] Pete Hegseth and the rest of the Pentagon team have been very clear that our pacing threat is China," he said. While the US Army's chief of staff, General Randy George, did not respond directly to questions about an imminent threat, or whether there were enhanced capabilities in China, he said keeping up with technological advancements was "what keeps us up at night". "What we are trying to do is to transform as rapidly as possible," he said. Alex Miller, the US Army's chief technology officer, said the PrSM's high speed halved the amount of warning time given to a potential enemy. He also said while the missile's explosion would not "level a city", its precision, driven by advanced navigation, was what made it lethal. "When you think about having six to seven minutes rather than 15 to 20 minutes, that's a lot less time for [a target] to pack up and roll out if they learn that they are being shot at," he said. In a statement from Mr Conroy's office, a spokesperson said future upgrades to the PrSM could include an extended strike range of over 1,000 kilometres, improved sensors and novel warheads.