Western Australian exploration and development company Delta Lithium has confirmed it will proceed with the demerger and initial public offering (IPO) of its Mt Ida gold assets through the creation of a new entity, Ballard Mining, subject to shareholder and ASX approvals.

The company announced on Tuesday that it had executed legally binding documents to spin out its rights, entitlements, and interests in the Mt Ida project as they relate specifically to gold. The demerger will be conducted via an in-specie distribution of Ballard Mining’s shares to eligible Delta shareholders, on the basis of one Ballard share for every 11.25 Delta shares held on the record date.

Delta stated that the move would allow shareholders to retain exposure to the value and upside potential of the gold assets while enabling the company to sharpen its focus on its core lithium projects.

"Re-setting the exciting and prospective Mt Ida gold asset into Ballard, a pure new gold company, at such an opportune time in the gold price cycle best positions Ballard to launch into early success, underpinned by a strong foundation of 1.1-million ounces of gold and a new dedicated and specialised management team," said MD James Croser.

Delta proposes, subject to shareholder approval, to demerge the gold asset through a spin-out of Ballard and in-specie distribution of Ballard's fully paid ordinary shares to eligible Delta shareholders.

At the same time, Ballard intends to launch an IPO, aiming to raise between A$25-million and A$30-million at A$0.25 a share, before costs, and to seek admission to the official list of the ASX. Following completion of the demerger and IPO, Delta will retain a significant interest in Ballard, about 49% at the minimum subscription and 46% at the maximum subscription level.

The demerger enables the company to continue focusing on its primary business, being the exploration and development of its lithium assets at the Mt Ida project and the Yinnetharra lithium project.

If approved by shareholders, the demerger is expected to be completed by early July 2025.

Ballard will be led by Simon Lill as nonexecutive chairperson, Paul Brennan as MD and CEO, Tim Manners as FD, as well as Croser and Stuart Mathews as independent nonexecutive directors. Loren Falconer will be company secretary and financial controller.