Ann: Ballard Mining Limited Prospectus, page-2

Decent assets suite between Li & Au alongside the healthy balance sheet. That's where the good part of Delta's story ends. The worst part is the BoD here is the arguably self-serving management style. Shareholders could & should be doing so much better but ultimately are held hostage by a Board looking to embed & secure their own futures at the expense of the fiduciary interests of shareholders. It's not uncommon on the ASX of course but it doesn't excuse unconscionable conduct.

The structure of the proposed spin off is abysmal. DLI shareholders only get a very small bite of Ballard directly, it's token & almost half of it will remain with DLI and yes as a DLI shareholder you still retain exposure indirectly to Ballard via your DLI holding along with a small in-specie award to which you can add to in the float. The gold asset is promising (esp in this environment) & I particularly like having the nominated Chair to keep the DLI leeches on the Ballard Board honest. DLI should retain no more than 20% of Ballard on its listing. Yes, $20-25mil of cash should & needs to be raised to kick off it's exploration program funded by a raise with DLI shareholders getting preference for additional scrip in the listing. The balance should be an in-specie parcel of shares for DLI shareholders which is multiples of what DLI are proposing to pass onto its shareholders.

Disclosure:- I purchased DLI as an arbitrage on its gold assets in Sept last year hoping to get decent exposure to an asset who's value is masked by DLI's Li focus. Can't see my thesis working with the current proposal and I'd say the market agrees....initially the proposal was greeted by a minor re-rating which has since disappeared with the realisation of the proposed structure of the spin-off.

Vote "No" to the proposal