Delta Lithium is moving ahead with the spin-out of its Mt Ida gold asset into a newly created entity, Ballard Mining, which on Friday lodged a prospectus ahead of a planned listing on the ASX.

The initial public offering (IPO) aims to raise between A$25-million and A$30-million through the issue of 100-million to 120-million shares at A$0.25 apiece, according to the prospectus. 

The company will be focused on exploring and developing the Mt Ida gold project, located about 100 km north-west of Menzies in Western Australia.

Delta Lithium, which will retain its lithium assets, is pursuing the demerger to unlock value from the significantly upgraded gold mineral resource estimate at Mt Ida. The company reported a large-scale gold system at the Baldock deposit and across the broader tenement package.

“Given the scale of the Mt Ida Gold mineral resource estimate, the board and management of Delta made a strategic decision to demerge the gold asset into Ballard to drive superior value for Delta shareholders and Ballard shareholders,” chairperson Simon Lill said in the letter to investors.

The demerger is subject to several conditions, including Delta shareholder approval, conditional ASX listing approval for Ballard, and Ballard securing the minimum A$25-million in IPO subscriptions. Eligible Delta shareholders will receive one Ballard share for every 11.25 Delta shares held as at the in-specie record date.

A mineral rights deed between Delta and Ballard grants the new entity exclusive rights to explore and mine for gold on the Mt Ida tenements, while Delta retains rights to all other minerals.

Ballard will be led by MD Paul Brennan, a mining engineer and experienced executive. Proceeds from the IPO will fund an extensive drilling programme aimed at expanding and infilling the existing gold resource.

Ballard’s board includes mining industry veterans, and nonexecutive directors have signalled their intention to participate in the IPO.

The spin-out marks Delta’s strategic effort to isolate its gold and lithium interests into distinct, focused vehicles, amid robust investor appetite for both battery metals and traditional precious metals exploration.