News: DLI UPDATE 1-MinRes tightens grip on rival Delta Lithium amid sector consolidation

(Updates with details and background from paragraphs 3-8)

Dec 13 (Reuters) - Australia's Mineral Resources (MIN) is consolidating its position in the country's lithium sector by further increasing its major stake in local miner Delta Lithium (DLI) .

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)