It’s a new week and Australia’s iron ore oligarchs are yet again buying up more equity in a local lithium player.

Lithium company Delta Lithium is raising funds and both billionaire iron ore chiefs Gina Rinehart and Chris Ellison are tipping in.

Delta owns the Mt Ida flagship lithium project in Western Australia. 

The company is looking to raise over $70 million Aussie dollars for activities to advance the final stages before production. 

Major shareholders Mineral Resources Limited (Chris Ellison) and Hancock Prospecting Pty Ltd (Gina Rinehart), representing 22% of Delta Lithium’s existing and outstanding shares – have indicated that they intend to take up their full entitlements, the company said.

Both billionaires are rapidly acquiring strategic stakes in multiple lithium companies across the state of Western Australia, where their companies are Headquartered. 

The pair have been involved in major acquisitions in recent months, as iron ore prices ride high – resulting in huge cash flow for their firms.

The bets on lithium come as lithium spot prices have fallen over the course of 2023, depressing the share price of many lithium miners.

Some sector analysts suggest prices are now bottoming.

Lithium is the key to winning the race to electrify global economies and for the rapid transition to EVs in transportation.

More from Delta Lithium:

The proceeds from the Entitlement Offer will be used to rapidly develop Mt Ida through to Final Investment Decision stage.

The completion of the feasibility study will also include licensing and approvals associated with mine development activities.

In addition, there will be drill campaigns to further define the Mineral Resource estimate in addition to the regional exploration.

At Yinnetharra a significantly enhanced exploration program will be conducted.

The program will include over 2,000 holes across the Yinnetharra prospects, including Jamesons once heritage clearance surveys have been completed.

This broadened program will see drill rigs increase from three to eight.

The expanded exploration plan will assist in delivering an initial Scoping Study at Yinnetharra and look to grow and upgrade the maiden Mineral Resource Estimate to be delivered later this quarter