Delta Lithium (ASX:DLI) said it is demerging its Mt Ida Gold asset into a new, standalone, gold-focused Australia-listed exploration company called Ballard Mining as it intends to separate its gold and lithium assets, according to a Thursday Australian bourse filing.
As part of the concurrent initial public offering, Ballard intends to raise between AU$25 million and AU$30 million, before costs, while eligible Delta shareholders will also be entitled to participate in a priority offer.
Former De Grey Chairman Simon Lill will be appointed as non-executive chairman of the new company, and Tim Manners will be its finance director.
The company said eligible Delta shareholders are expected to receive one Ballard Share for every 11.25 fully paid ordinary shares in Delta through an in-specie distribution.
The company will retain a substantial stake in Ballard to keep an "upside" exposure, the filing added.
The company's shares rose nearly 3% in recent Thursday trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.