Delta Lithium Limited · ASX:DLI
Delta Lithium — Investor Presentation (November 2023)
43 slides from Delta Lithium's investor presentation, Nov 13, 2023
Slide 1: Driving Lithium Discovery & Development: Equity Raising Presentation
For personal use only DRIVING LITHIUM DISCOVERY & DEVELOPMENT EQUITY RAISING PRESENTATION Not for release to US wire services or distribution in the United States
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Disclaimer You must read the following notices before reading or making any use of this document or any Not financial product advice information contained in this document. By continuing to read, use or otherwise act on this document, For personal use only you agree
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Forward-looking statements are provided as a general guide only and should not be relied on as a guarantee of A Beneficiary may act as a lender and/or counterparty to Delta or its affiliates and may or now in the future future performance. Forward-looking statements
Slide 4: Important Notices and Disclaimer: Competent Person Statement
IMPORTANT NOTICES AND DISCLAIMER Competent Person Statement JORC and Listing Rules Compliance Statement Information in this Presentation that relates to exploration results is based upon work undertaken by Mr. Charles Hughes, a Competent Person who is a Member of the Australasian Institute of Mining
Slide 5: Rapid Development of WA Lithium Assets
RAPID DEVELOPMENT OF WA LITHIUM ASSETS For personal use only Our Team Major Shareholders Location Experienced resource professionals Substantial investments by proven lithium Projects located in Western Australia the with Life of Mine vision miners, multinationals and investors hard-rock lithium cap
Slide 6: Executive Summary
EXECUTIVE SUMMARY Delta is undertaking a $70.2 million equity raising to execute on its growth strategy and enable rapid development • Leading lithium development company with key assets in strategic regions of Western Australia For personal use only Introduction • Delta is focused on rapidly advanc
Slide 7: Corporate Overview
CORPORATE OVERVIEW CURRENT OFFER PRO FORMA For personal use only SHARES ON ISSUE 533.8M 152.5M 686.3M PERFORMANCE RIGHTS 15.7M - 15.7M OPTIONS 25.8M - 25.8M MARKET CAP A$278M1 - A$348M3 CASH A$63M2 A$70.2M A$133M4 Notes: 1. As at Friday, 10 November 2023. 2. 3. As at 31 October 2023. Market capitali
Slide 8: Board and Key Management
BOARD AND KEY MANAGEMENT BOARD OF DIRECTORS For personal use only Chris Ellison James Croser Steve Kovac Non-Executive Chairman Managing Director Non-Executive Director • 40+ years experience in the • 20+ years operational, • Current CEO of Idemitsu Australian mining and technical and management Aus
Slide 9: Board and Key Management: Key Management Personnel
BOARD AND KEY MANAGEMENT KEY MANAGEMENT PERSONNEL For personal use only Jeremy Sinclair Daniel Taylor Chief Operating Officer Chief Marketing Officer • Highly experienced mining executive across various • 20+ years experience in international sales, marketing, shipping commodities and business devel
Slide 10: Equity Raising Overview
For personal use only EQUITY RAISING OVERVIEW DELTA LITHIUM | CORPORATE UPDATE 10
Slide 11: Details of the Entitlement Offer
DETAILS OF THE ENTITLEMENT OFFER • Fully underwritten1 2-for-7 pro-rata accelerated non-renounceable entitlement offer to raise gross proceeds of $70.2m Offer Structure • Approximately 152.5m new fully paid ordinary shares (“New Shares”) to be issued, representing approximately 28.6% of the current
Slide 12: Sources and Uses
SOURCES AND USES Post capital raising, Delta will be fully funded through to FID at Mt Ida and a scoping study at Yinnetharra Exploration Project Site Infrastructure Extensive drill program at Exploration camp improvements Sources $M % of For personal use only Total Yinnetharra, increasing to 8 rigs
Slide 13: Indicative Timetable
INDICATIVE TIMETABLE Institutional Entitlement Offer and Institutional Bookbuild For personal use only Offer announcement Monday, 13 November 2023 Institutional Offer Opens Monday, 13 November 2023 Institutional Offer closes (5.00pm AWST) Tuesday 14 November 2023 Settlement of New Shares under the I
Slide 14: Mt Ida Lithium Project
For personal use only MT IDA LITHIUM PROJECT DELTA LITHIUM | CORPORATE UPDATE 14
Slide 15: Mt Ida Lithium Project
MT IDA LITHIUM PROJECT 14.6Mt @ 1.2% Li2O1 paving the way for commencement of mining For personal use only Drilling completed 1,000+ holes for 200,000m+ MRE recently increased the Indicated Resource by 136% Maiden gold MRE 3.1 Mt @ 4.1g/t for 412,000oz Granted Mining Leases and Granted Mining Approv
Slide 16: Mt Ida Lithium Project: Upcoming Project Development
MT IDA LITHIUM PROJECT Upcoming Project Development For personal use only Mining Approval granted Nov’23 for Phase 1 Camp upgrade & bypass road RC and Diamond drilling resource/metallurgy/geotech Regional step out campaign Review options to monetise the gold resources Feasibility Study and potential
Slide 17: Mt Ida Gold Resource
MT IDA GOLD RESOURCE Near-term revenue potential in a proven gold district Includes high-grade shallow resources: For personal use only Baldock 086 0.24Mt @ 9g/t Au for 70koz2 Meteor North 140 0.6Mt @ 4.7g/t Au for 91koz2 50% of the gold in Indicated Resources 100% of the gold within granted Mining
Slide 18: Yinnetharra Lithium Project
For personal use only YINNETHARRA LITHIUM PROJECT DELTA LITHIUM | CORPORATE UPDATE 18
Slide 19: Yinnetharra Lithium Project
YINNETHARRA LITHIUM PROJECT Discovery in the emerging Gascoyne Province For personal use only Potential to prove significant scale and grade and grow to a globally significant project 50+ identified pegmatite outcroppings Early-stage exploration project covering over 500km2 Less than 5% of the tenem
Slide 20: Yinnetharra Lithium Project: Upcoming Exploration Program
YINNETHARRA LITHIUM PROJECT Upcoming Exploration Program Significantly enhanced drilling target of For personal use only 250,000m300,000m and 2,000+ drill holes Release of maiden Mineral Resource Estimate (MRE) for Malinda Resource definition, step-out and regional drilling. 3 rigs going to 8 Yinne
Slide 21: Yinnetharra – Malinda Prospect
YINNETHARRA – MALINDA PROSPECT Six well defined pegmatites at Malinda Mineralisation is present from surface to a depth of at least 350m For personal use only Two of these pegmatites have consistent mineralisation over 1.6km and open Exciting shallow and wide initial intercepts into M47 pegmatite: •
Slide 22: Yinnetharra – Jamesons Prospect
YINNETHARRA – JAMESONS PROSPECT 20km to the west of the Malinda For personal use only Prospect Discovered as part of first pass regional mapping More than 20 pegmatites mapped, with only limited sampling completed to date Assays received of the rockchip sample confirmed 4.2% Li2O and the lithium min
Slide 23: Yinnetharra – Preliminary Metallurgy
YINNETHARRA – PRELIMINARY METALLURGY Preliminary metallurgical test For personal use only work indicates high grade spodumene concentrates can be produced with low impurities10 XRD on these met samples indicates spodumene is the only lithium species present Coarse spodumene drilled at YNRD005 from t
Slide 24: Looking Forward
For personal use only LOOKING FORWARD DELTA LITHIUM | CORPORATE UPDATE 24
Slide 25: Pipeline of Upcoming Milestones
PIPELINE OF UPCOMING MILESTONES Q4 - 2023 Q1 - 2024 Q2 - 2024 Q3 - 2024 Q4 - 2024 For personal use only MT IDA Ongoing Exploration Results Scoping Study – Concentrate Project Mining Approval Phase 1 Exploration Camp and Road upgrade Feasibility Study Concentrate Project FID Concentrate Project YIN
Slide 26: Premium Locations: We Are The Difference
Premium Locations Hardrock Lithium Capital of the World For personal use only Our Team Results driven with proven hardrock lithium experience Mt Ida Near-term JORC 14.6 Mt @ 1.2% Li2O Mining Approval granted Yinnetharra “WE ARE THE DIFFERENCE” Tier one potential with <5% of the project explored so f
Slide 27: Appendix
For personal use only APPENDIX DELTA LITHIUM | CORPORATE UPDATE 27
Slide 28: Appendix A – Risks Associated with the Company
APPENDIX A – RISKS ASSOCIATED WITH THE COMPANY The Company's’ risk management framework is embedded within existing processes and is aligned to the Group’s strategic business objectives. Set out below are specific risks that relate to the Company’s business. In addition, there are general risks, man
Slide 29: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) FUTURE REQUIREMENTS FOR FUNDING The Company’s funding requirements depend on numerous factors including the Company’s future exploration, project evaluation, project development and work programs. Additional funding may be raised (for example) through debt or
Slide 30: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) DRILLING RISKS The Company’s future drilling operations may be curtailed, delayed or cancelled due to a number of factors including lack of funding, weather conditions, mechanical difficulties, shortage or delays in the delivery of rigs and/or other equipment
Slide 31: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) MINING RISKS AND MINERAL RESOURCE AND ORE RESERVE ESTIMATES When compared with many industrial and commercial operations, mining and mineral processing projects are relatively high risk. The nature of mineralisation, the occurrence and grade of the ore, as we
Slide 32: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) The Company is dependent on the experience, expertise and abilities of its Board and management team in overseeing the day-to-day operations of the Company. The Company is seeking to ensure its management team and Board have the requisite skills to successful
Slide 33: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) ENVIRONMENTAL LIABILITIES RISK The Company’s activities are subject to potential risks and liabilities associated with (without limitation) the potential pollution of the environment and the necessary disposal of mining waste products resulting from mineral e
Slide 34: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) Mining development and operations can be subject to public and political opposition. Opposition may include legal challenges to exploration and development permits, political and public advocacy, electoral strategies, ballot initiatives, media and public outr
Slide 35: Risks Associated with the Company (cont)
RISKS ASSOCIATED WITH THE COMPANY (CONT) CYBER SECURITY The potential for malicious cyber security attacks resulting in the misuse and release of sensitive information poses an ongoing and real risk to the operations of the company. Delta continues to progress its Information and Communications Tech
Slide 36: Appendix B – International Offer Restrictions
APPENDIX B – INTERNATIONAL OFFER RESTRICTIONS This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside A
Slide 37: International Offer Restrictions (cont)
INTERNATIONAL OFFER RESTRICTIONS (CONT) Language of documents in Canada. Upon receipt of this Presentation, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certainty any
Slide 38: International Offer Restrictions (cont)
INTERNATIONAL OFFER RESTRICTIONS (CONT) Other than in the entitlement offer, the New Shares may only be offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) to a person who: • is an investment business within the meaning of clause 37 of Schedule 1 of the
Slide 39: International Offer Restrictions (cont)
INTERNATIONAL OFFER RESTRICTIONS (CONT) UNITED KINGDOM Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets
Slide 40: Appendix C – Mineral Resource Estimates (Mt Ida – Lithium)
APPENDIX C – MINERAL RESOURCE ESTIMATES (MT IDA – LITHIUM) For personal use only Li2O Ta2O5 Cut-off grade Resource Category (Li2O%) Tonnes Grade Li2O Grade (Mt) (Li2O%) (Kt) (Ta2O5 ppm) INDICATED 7.8 1.3 104 224 INFERRED 0.55 6.8 1.1 76 154 TOTAL 14.6 1.2 180 191 Refer ASX release 3 October 2023 tit
Slide 41: Mineral Resource Estimates (cont) (Mt Ida – Gold)
MINERAL RESOURCE ESTIMATES (CONT) (MT IDA – GOLD) For personal use only Au Cut-off grade Resource Category (Au g/t) Tonnes Grade Au (Mt) (Au g/t) (koz) INDICATED 1.12 5.7 206 0.5g/t Open Pit INFERRED 1.97 3.2 206 1.5g/t Underground TOTAL 3.10 4.1 412 Refer ASX release 11 October 2023 titled ‘Mt Ida
Slide 42: Appendix D – Summary of Underwriting Arrangements
APPENDIX D – SUMMARY OF UNDERWRITING ARRANGEMENTS Delta has entered into an underwriting agreement with the Joint Lead Managers and the Underwriter (Underwriting Agreement), pursuant to which the Underwriter will fully underwrite the Entitlement Offer For personal use only on the following key terms
Slide 43: Summary of Underwriting Arrangements (cont)
SUMMARY OF UNDERWRITING ARRANGEMENTS (CONT) • (fees) no underwriting fees will be payable to the Underwriter in connection with the Entitlement Offer contemplated in by the Underwriting Agreement; • (sub-underwriting) the Underwriter will be responsible for any sub-underwriting, broker commissions o
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