Australian miner Zeus Resources has finalized a binding asset sale agreement with Electrostate, a subsidiary of Delta Lithium, to sell its 100% interest in the Mortimer Hills lithium project (Tenement E09/2147) in the Gascoyne region of Western Australia. The agreement includes an upfront cash payment of A$150,000 (approximately $95,882) and a structured resource royalty, contingent on the delineation of a lithium mineral resource with a minimum grade of 0.8% lithium oxide within the next four years.

Delta Lithium will take on all future exploration costs at Mortimer Hills.

The royalty payments will vary based on the size and grade of the lithium resource, with specific rates applied depending on whether the resource is less than five million tonnes, between five and ten million tonnes, or more than ten million tonnes. This agreement ensures that Zeus will benefit from potential future discoveries, while Delta Lithium assumes responsibility for all future exploration costs at the Mortimer Hills site.

This strategic move enables Zeus to focus on capital preservation and optimizing its balance sheet, while still maintaining exposure to any potential upside from the project through the royalty structure. The settlement of the transaction is expected to be completed soon, pending the fulfillment of standard conditions.

Zeus Resources Chairman Alvin Tan commented on the deal, saying: “The Mortimer Hills transaction allows Zeus to realize upfront value and retain exposure to potential lithium upside through a well-structured royalty. It’s a win-win that enables us to focus on advancing our other projects while maintaining optionality should Delta be successful in defining a lithium resource.”

In March 2023, Delta Lithium signed binding farm-in joint venture agreements with Voltaic Strategic Resources and Reach Resources, further expanding its presence in the Gascoyne region. This acquisition is a part of Delta's ongoing strategy to strengthen its position in the lithium sector.