Given how much Flano seemed to be a fan of Yinni and RR1, this is pretty relevant to us I feel.
Mineral Resources’ Chris Ellison takes control of Delta Lithium, David Flanagan to exit
Sean SmithThe West Australian Tue, 12 September 2023 10:56AM
Chris Ellison has taken control of Delta Lithium in a sudden management and board shake-up that includes the immediate departure of the explorer’s executive chairman David Flanagan after little more than a year.
Barely a month after Mr Ellison’s Mineral Resources launched a share market raid to become the junior’s biggest shareholder with 17.4 per cent, Delta said on Tuesday the billionaire had joined its board as non-executive chairman.
Also appointed as a director is MinRes’ lithium boss Josh Thurlow.
Delta shares were 7 per cent higher at 74¢ as at 9.15am, valuing the group at $396 million.
The moves confirm Delta’s two lithium projects in the Goldfields (Mt Ida) and the Gascoyne (Yinnetharra) are set to play a major part in Mr Ellison’s expansion plans for the battery metal in WA, which include building up his inventories to support a move into downstream processing.
However, Mr Flanagan, who was drafted into Delta in August 2022 to accelerate development of the projects, will not see them into production.Delta said that with the board deciding it “appropriate” to split the chief executive and chairman roles, Mr Flanagan would leave the company with immediate effect.
“MinRes has been watching the assets at both Mt Ida and Yinnetharra and the Delta team has done a remarkable job in defining and growing them in a short period of time,” Mr Ellison said in Delta’s announcement of the changes.
“We think there is significant potential yet to be uncovered and we are excited about what co-operation between our two businesses can yield.”
Delta said it would lean on MinRes’ experience in approvals, mining and marketing as it worked on Mt Ida and Yinnetharra.
The former, 100km north-west of Menzies, is said to be one of the State’s most advanced pre-development lithium projects, with Delta hoping to secure mining approvals by the end of the year.
Prior to the arrival of MinRes, the company had suggested it could be brought into production for as little as $50m and a direct shipping ore product exported from Geraldton.
However, it appears Mt Ida will now figure in MinRes’ plans for its producing Mt Marion lithium project, 40km south-west of Kalgoorlie.
Two weeks ago, Mr Ellison suggested more was afoot when he was asked about MinRes’ investment in Delta.
“Look, I have got a very clear strategy on what we’re doing down in that whole region,” he said.
“Obviously with Delta, we liked the dirt particularly up in the upper Gascoyne and Murchison region, but we have also got a strategy on what we’re doing with the land down in that whole region around Mt Marion.
“I can’t really share it at the moment because if I do, I’m just sharing it with our competitors and they’re going to try and copy me.”
Mr Flanagan had been backed in an unusual pact struck by Japanese group Idemitsu when it increased its stake in Delta to 15 per cent in June.
Under that agreement, Idemitsu agreed to support the recommendation of the board on any offer, or any undertaking that effected a change in control of the company, conditional on Mr Flanagan remaining at the helm.
“While Idemitsu remains highly supportive of the company and its strategy, Mr Flanagan’s departure has brought to an end the change of control undertaking,” Delta said on Tuesday.
Mr Flanagan will be replaced as chief executive of Delta by one of its directors, James Croser, until a permanent replacement is appointed.
Mr Croser thanked Mr Flanagan for his “incredible energy, passion and hard work” over the past 12 months.
“Under his leadership, the Delta team has rapidly expanded the knowledge at Yinnetharra and diligently progressed the speed to market strategy at Mt Ida,” he said.
Delta shares were trading under 20¢ prior to Mr Flanagan’s appointment and peaked at 95¢ in June.
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