Jindalee Lithium Limited (ASX: JLL, OTCQX: JNDAF) has announced a successful placement, raising $8 million before expenses. Jindalee Lithium is focused on developing its lithium assets, including the McDermitt project in the United States, and advancing towards potential commercial production. The company is also exploring opportunities through a special purpose acquisition company (SPAC) transaction.
The placement, priced at $0.55 per share, garnered strong support from both Australian and US investors, including new institutional shareholders. Participants in the placement will also receive options to acquire additional shares at $0.825, expiring in November 2028. In addition to the placement, Jindalee intends to offer directors up to $120,000 worth of shares, subject to shareholder approval.
The raised capital is earmarked for several key initiatives, including exploration drilling and metallurgical testwork at the McDermitt Lithium Project. Funds will also be used to repay convertible notes and provide working capital to progress the proposed SPAC transaction. Managing Director and CEO Ian Rodger expressed satisfaction with the placement’s strong support, noting growing confidence in Jindalee and the strategic importance of McDermitt.
Furthermore, Jindalee will offer eligible shareholders in Australia and New Zealand a Share Purchase Plan (SPP), targeting to raise up to $1 million at the same price as the placement. The SPP will allow existing shareholders to participate on similar terms, with each share issued also including an attaching option. The company also announced it entered into a non-binding term sheet for an equity line of credit of up to US$100M, conditional upon completion of the proposed merger.
