The shovel-ready lithium project backed by MinRes and Hancock

Delta Lithium will raise $70 million to pursue critical milestones at its shovel-ready Mt Ida lithium project.

It follows the approval of Delta’s mining proposal and mine closure plan at Mt Ida, which permits the company to commence open-pit mining operations.

“Approval of open pit mining now positions the company to take advantage of the opportunity to exploit shallow gold ore that is overlying lithium ore,” Delta told the market.

The latest cash injection will allow for the rapid development of Mt Ida, further defining the mineral resource estimate, and helping deliver a definitive feasibility study and final investment decision.

Funds will also permit a sweeping 2000-hole exploration program at the company’s Yinnetharra lithium project in WA. Delta is targeting an initial scoping study for the project, and is looking to upgrade the maiden mineral resource estimate, which is set for later this quarter.

Both Hancock Prospecting and Mineral Resources (MinRes) – both major stakeholders in Delta – intend to take up their full entitlements, will account for a combined $15.4 million of the offer. In fact, MinRes founder and managing director Chris Ellison recently joined Delta as non-executive chairman.

The entitlement offer will comprise the issue of 152.5 million new fully paid ordinary shares at an offer price of $0.46 each. This represents a 17 per cent discount to the 5-day volume weighted average price of shares up to and including November 10 2023.

An accelerated institutional component of the raise kicked off this week, with the retail component opening November 20.

“The equity raising will provide Delta with greater financial flexibility to accelerate development at both Mt Ida and Yinnetharra,” Delta managing director James Croser said.

“In particular, the additional funds will allow us to significantly increase drilling activities at both projects and ensure the company is funded through key milestones over the next 15 months, including delivery of a scoping study at Yinnetharra and a final investment decision on the Mt Ida concentrate project.”