DELTA LITHIUM TO SPIN OUT GOLD ASSET INTO BALLARD MINING

Shareholders to gain exposure to new gold-focused explorer as Delta splits Mt Ida Project

Delta Lithium Limited (ASX:DLI) has confirmed plans to spin out its Mt Ida Gold asset into a separate ASX-listed gold exploration vehicle, Ballard Mining Limited, via a demerger and concurrent initial public offering (IPO). The move is aimed at unlocking value from the Mt Ida Project by separating the company’s gold and lithium assets.

Under the proposed in-specie distribution, eligible Delta shareholders are expected to receive one Ballard share for every 11.25 Delta shares held. Ballard will simultaneously launch an IPO to raise between $25 million and $30 million before costs, at an issue price of $0.25 per share.

Following completion of the demerger and IPO, Delta will retain approximately 49% of Ballard, ensuring ongoing exposure to the gold asset. Ballard will hold the gold interests of the Mt Ida Project through 100% ownership of Mt Ida AU Pty Ltd.

A refreshed management team will lead Ballard, including former De Grey Chairman Simon Lill as Non-Executive Chairman and Delta Managing Director James Croser as a Non-Executive Director to support a smooth transition.

The demerger follows an April 2025 update to the gold Mineral Resource Estimate at Mt Ida, which now totals 10.3Mt @ 3.33 g/t Au for 1.1Moz across several deposits. Key deposits include:

Baldock Deposit: 930,000oz
Kestrel Deposit: 53,000oz
West Knell Deposit: 40,000oz
Bombay Deposit: 33,000oz
Golden Vale Deposit: 27,000oz

The separation allows Delta to maintain its strategic focus on lithium, particularly at Mt Ida and the Yinnetharra Lithium Project, while giving Ballard dedicated capital and management to advance the gold portfolio.

Commenting on the demerger, Managing Director James Croser said:

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.

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. I encourage all Delta shareholders and members of the gold investment community alike to consider carefully the prospectus information when released. We look forward to welcoming the new shareholders of Ballard.