Ann: MI6: Sale of Aston Lithium-REE Project, page-2

*As a Delta Lithium Limited (DLI) shareholder, this news is positive, though modest in immediate impact. Here's why:

Why It's Good News for DLI Holders

1. Strategic Expansion at Low Cost

• DLI is acquiring the Aston Lithium-REE Project for just $450,000 in cash plus a 1.5% Net Smelter Royalty (NSR) on future lithium production.

• The Aston Project is located adjacent to DLI’s Yinnetharra Lithium Project in WA’s Gascoyne region, allowing for easy integration and exploration synergies.

2. Increased Land Position

• The deal includes 17 tenements, meaning DLI is consolidating ground in a highly prospective lithium province. This increases the potential resource footprint around Yinnetharra.

3. No Immediate Dilution

• The purchase is in cash only, so there’s no new shares issued or dilution to existing holders.

4. Exploration Upside

• While there's no JORC resource on Aston yet, the strategic location suggests DLI sees exploration potential, especially in proximity to its current projects.

• Even if only a portion proves fruitful, the low entry cost makes this a cheap call option on future lithium resources.

What to Keep in Mind

• The royalty (1.5% NSR) goes to Minerals 260, meaning a small portion of future lithium revenue from these tenements will not go to DLI.

• There’s no current resource estimate disclosed for Aston, so the upside is purely exploration-driven at this stage.

• DLI may need to invest in drilling and exploration to prove up anything substantial.

Bottom Line

This is a strategic and low-risk acquisition that strengthens Delta Lithium’s land position in the Yinnetharra district. It aligns with DLI's growth strategy and offers cheap upside potential, making it a constructive development for shareholders.

*gpt4o