MinRes tightens grip on rival Delta Lithium amid sector consolidation (updated)

Delta Lithium

13/12/2023 03:12

(Updates with details and background from paragraphs 3-8)
       Dec 13 (Reuters) - Australia's Mineral Resources
 MIN.AX  is consolidating its position in the country's lithium
sector by further increasing its major stake in local miner
Delta Lithium  DLI.AX .
    Chris Ellison-led MinRes has bolstered its ownership with a
24.27% stake in Delta, according to a filing on the Australian
Securities Exchange on Wednesday. 
    Delta Lithium, a West Australian explorer, had in November
started raising around A$70 million ($46 million), with Mineral
Resources participating, the exchange filing showed.
        Both MinRes and Delta Lithium did not respond to
Reuters' request for comments.
  
        Delta had in September, appointed MinRes' founder and
managing director, Chris Ellison, as its non-executive chairman
and its lithium business head, Josh Thurlow, as a non-executive
director.
  
        Delta, formerly known as Red Dirt and TNT Mines,
initially focussed on gold exploration, but shifted course to
lithium in 2021.
  
        The funds raised in November are being utilised to
support Delta's flagship drilling programs at Mt Ida Lithium
project and Yinnetharra Lithium project.
  
    MinRes' stake increase coincides with the ongoing wave of
consolidation in the Australian lithium market, where depressed
valuations and cash needs are forcing struggling miners to seek
support from larger players for a lifeline.
    



($1 = 1.5251 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Rishav.Chatterjee@thomsonreuters.com;))