Delta Lithium (ASX:DLI) is demerging its Mt Ida Gold Project into a new entity, Ballard Mining, slated for an ASX listing. This strategic move aims to unlock shareholder value by separating its gold and lithium assets. The IPO targets raising $25 to $30 million at $0.25 per share, potentially valuing Ballard Mining at $80 to $85 million upon debut. Bell Potter Securities and Argonaut are managing the IPO, with Thomson Geer as legal advisor.
Delta will distribute Ballard shares to existing shareholders and retain a significant stake (46-49%) post-IPO. This allows Delta to concentrate on developing its core lithium assets at the Mt Ida and Yinnetharra projects in Western Australia. The Mt Ida Gold Project boasts a substantial resource of 1.1 million ounces of gold. Delta believes a dedicated company can better develop this asset, particularly given current gold prices, which are around US$3,180 per ounce. The demerger, subject to shareholder approval, is expected to be finalized by early July.
