The objective of this paper is to propose a new efficient technique for the estimation of time-delay parameters using wavelet theory and third-order cumulants, yielding good performance even in the case of low SNR. In particular, band-limited non-Gaussian signals with non-zero skewness and spatially correlated Gaussian noises are considered here. The approach is based on the fact that the effects of spatially correlated Gaussian noises on time-delay estimation can be reduced by using the projection sequences (based on the redundant wavelet decomposition) of given measurements in the higher-order cumulant domain. Finally, the performance of the proposed approach is demonstrated using simulations.