Hancock, MinRes back Delta’s $70m raising

Mining magnates Gina Rinehart and Chris Ellison will back Delta Lithium’s $70.2 million raising to fund its Goldfields lithium venture. 

The Subiaco-based lithium hopeful told the market this morning it was undertaking a fully-underwritten entitlement offer for eligible shareholders on the basis of two shares for every seven existing shares.

Delta will issue about 152.5 million new fully paid ordinary shares at an offer price of 46 cents. 

The targeted $70.2 million will be used to fund the development of Delta’s Mt Ida lithium project in the Goldfields through to the final investment decision stage expected in late-2024.

The Mt Ida project is the same emerging lithium province where Legacy Iron Ore, Hawthorn Resources and joint venture partner Hancock Prospecting exploring. 

The new equity will also fund the development of Delta’s Yinnetharra lithium project in the Gascoyne.

Mr Ellision's Mineral Resources and Mrs Rinehart's Hancock, which collectively hold a 22 per cent stake in Delta, have indicated they will take up their full entitlements under the offer, worth $15.4 million.

MinRes is also underwriting the entitlement offer. 

It comes after Mr Ellison muscled into the Delta board to become the miner’s chairman, ousting former executive chair David Flanagan. 

The board commotion came a month after Mr Ellison bought a substantial stake in the lithium explorer, now sitting at 17.44 per cent. 

Today’s ASX announcement has revealed Mrs Rinehart’s interest in Delta currently sits at 4.6 per cent. 

“We are delighted that Mineral Resources and Hancock Prospecting have both shown their support by indicating their intension to take up their entitlements, which reflects the quality of our projects and their potential to deliver significant value for our shareholders,” Delta managing director James Croser said.