Delta Lithium Ltd (ASX: DLI) is yet to be a household name in the industry, but that hasn't stopped it from receiving plenty of attention lately. This is evidenced by the Delta Lithium share price climbing 8% on Tuesday.
As the closing bell chimed, shares in the Western Australia lithium hopeful finished at 81 cents a pop. The stellar performance was one of the exceptions among an otherwise unremarkable day for companies involved with the electrifying commodity.
The anomalous excitement might be attributable to some whispers through the grapevine.
Image source: Getty Images
Is a lithium rockstar buying Delta Lithium shares?
Daily trading volume in Delta Lithium has averaged around 4.76 million shares for the past month. According to reports, a parcel of 60 million Delta Lithium shares was exchanged late yesterday afternoon — more than ten times the recent average volume traded.
Most notably, the transaction was made at a significant premium to the market price. While the share price closed the day at 75 cents apiece, one insatiable investor was content paying 92.5 cents per share — 23% above the quoted price — equating to a $55.5 million trade.
Rumours are circulating that a big-name lithium miner could be behind the buy. Specifically, various reports suggest Mineral Resources Ltd (ASX: MIN) might be the interested party.
This wouldn't be out of character for the lithium giant headed by Chris Ellison. In the past, MinRes has taken stakes in other lithium mining companies, including Pilbara Minerals Ltd (ASX: PLS), before selling its holding in 2021.
More recently, Mineral Resources acquired a parcel in Global Lithium Resources Ltd (ASX: GL1). The lithium producer is also thought to be holding a position in Patriot Battery Metals Inc (ASX: PMT).
Explorer becomes producer
A drilling update released on 8 August is undoubtedly further spreading the word of Delta Lithium shares.
As stated in the announcement, the company's Mt Ida lithium project in the Goldfields region of Western Australia is on track for mining approval later this year. Management is targeting possibly kicking off operations before Christmas.
Delta Lithium executive chair David Flanagan said:
Mt Ida is the only lithium project in the current Western Australian mines department currently under consideration. It is going to be the next lithium mine in WA.
Such a statement hardly goes unnoticed.
The Delta Lithium share price has climbed an astonishing 80% in 2023.
