- Delta Lithium (DLI) has secured $46.4 million from Idemitsu Australia, a subsidiary of Japanese petroleum company Idemitsu Kosan
- Idemitsu acquired 65.6 million fully paid ordinary shares in DLI at 70.75 cents apiece, increasing Idemitsu’s stake in the company to 15 per cent
- The parties will also enter a strategic cooperation agreement, allowing Delta to benefit from Idemitsu’s technical and financial capabilities
- The proceeds raised will help fund the exploration and drilling at Delta’s Yinnetharra lithium project in Western Australia
- Shares is up 3.05 per cent, trading at 67.5 cents at 1:40 pm AEST
Delta Lithium (DLI) has secured $46.4 million from Idemitsu Australia, a subsidiary of Japanese petroleum company Idemitsu Kosan.
Idemitsu acquired 65.6 million fully paid ordinary shares at 70.75 cents, an eight per cent premium to the last closing price.
The deal will see Idemitsu increase its shareholding in the company to 15 per cent.
Along with the placement, the companies will also enter a strategic cooperation agreement, which will allow Delta to benefit from Idemitsu’s technical and financial capabilities.
“This is an important time for the world as we all look to responsibly engage with communities and wind back carbon emissions world wide,” Idemitsu CEO Steve Kovac said.
“We think Delta presents an important step in making a difference and also delivering good returns for all shareholders.”
“Idemitsu’s second major investment in Delta Lithium is another exciting move as we double down on our strategic investments in critical minerals as the world turns to a more advanced renewable future.”
The proceeds raised will help fund the exploration and drilling at Delta’s Yinnetharra lithium project, and upgrade infrastructure and feasibility studies at the Mt Ida Lithium project, plus help fund the exportation of materials from the projects.
The partnership will also allow Idemitsu to nominate a director of Delta’s board, as well as vote in board decisions.
Meanwhile, twelve drill rigs are currently spinning at both Yinnetharra and Mt Ida. Delta has completed 205 holes for 47,501 metres at Yinnetharra and 338 holes for 61,514 metres at Mt Ida.
DLI rose 3.05 per cent, trading at 67.5 cents at 1:40 pm AEST.