Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Delta Lithium has received a near A$46.4-million capital injection through a strategic share placement with Japanese conglomerate Idemitsu Kosans’ subsidiary Idemitsu Mt Ida.
Idemitsu has acquired 65.6-million ordinary shares in Delta at an issue price of 70.75c a share, representing a 7.5% premium to Delta’s ten-day volume weighted average share price.
The share placement increases Idemitsu’s shareholding in Delta to 15%.
“Idemitsu is a global scale diversified conglomerate with significant financial capacity and capabilities in lithium battery technologies, mining, chemical engineering, commodity trading, shipping, construction and advanced manufacturing,” said Delta executive chairperson David Flanagan.
“Idemitsu is dedicated to use its market position to substantially reduce global carbon emissions. Through its 112-year history in delivery of various lubricant and chemical products into the petroleum and transport industry, Idemitsu has developed key trusted supply relationships with selected vehicle manufacturers worldwide. Delta welcomes Idemitsu as an important business partner as we work together in every aspect to accelerate the development of a globally important critical minerals business. This is a huge boost in our ability to fund the development of the Mt Ida and Yinnetharra lithium projects.”
Proceeds from the placement will be used to progress exploration and drilling at the Yinnetharra lithium project, in Western Australia, and for camp upgrades and road diversions at the Mt Ida project, as well as feasibility studies at both of these projects.
Funding would also go towards early works capital and development costs associated with potential direct shipping ore and future lithium concentrate operations at Mt Ida.