Jindalee Lithium raising up to A$6.7M To Progress McDermitt Lithium Project

Jindalee Lithium Ltd (ASX:JLL) is raising up to A$6.7 million to progress work at its McDermitt Lithium Project, which hosts the largest lithium deposit in the USA.

The capital raise consists of three elements:

  • a placement of ~A$0.6 million to institutional investors, directors and management at A$0.30 per share with attaching options;
  • a non-renounceable rights issue to existing shareholders on a 1 for 6 basis at A$0.30 per share with attaching options to raise up to A$3.1 million; and
  • a funding facility including:
    • A$3.0 million investment for convertible notes
    • Additional potential funding of up to A$9 million for convertible notes

Pre-Feasibility Study

Funds raised from the capital raise will be used to complete the McDermitt Pre-Feasibility Study (PFS) by incorporating new value optimisation opportunities.

These are expected to improve capital intensity, operating costs and production outcomes vs the initial scope of PFS.

Jindalee’s goal is to improve early returns while still delivering a multi-decade production outlook for battery-grade carbonate.

Strong support

US-based fund manager Mercer Street has agreed to provide the company with a A$0.5 million equity investment via the placement.

The company has also entered into a funding facility with Mercer Street of up to A$12 million.

This includes an initial tranche of A$3.0 million and additional potential funding of up to A$9.0 million by mutual agreement

Furthermore, Jindalee has secured formal commitments from directors and management totalling A$0.6 million in the placement and entitlement Issue.

Key funding secured

Jindalee CEO Ian Rodger said: “We are very pleased to have secured the support of Mercer Street as a long-term funding partner, alongside the continued backing of our existing shareholders.

“We firmly believe that the funding initiatives announced today will support Jindalee’s work programs for the foreseeable future.

“This funding will enable us to deliver several key value catalysts in the second half of 2024, including the optimised McDermitt PFS and a potential award decision for US Government grant funding.”

Upcoming value catalysts

Jindalee has continued to progress McDermitt throughout 2024, with the capital raise to allow the company to execute on several potential value catalysts in the second half of CY2024.

These include:

  • Tribal Agreements (Q3)
  • US Government technical cooperation agreement (Q3)
  • Production of battery grade lithium carbonate from test work (Q3)
  • Update on POSCO test work currently underway in Korea (Q3)
  • Completion of optimised McDermitt PFS (Q4)
  • Potential award decision for non-dilutive US Government grant funding (Q3/Q4)
  • Commence strategic partnership/investment process (Q4)

 

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