Jindalee Resources (ASX:JRL) has unveiled a capital raising initiative of up to $5.5 million. This comprises a $2 million Priority Offer to Eligible Securityholders and a $3.5 million Public Offer, with the aim of advancing exploration at their wholly owned McDermitt Lithium Project and supporting general working capital needs.
The Capital Raise
The Company plans to undertake a undertake a capital raising including the issue of up to 3,930,000 new ordinary shares at an issue price of $1.40 per share to raise up to $5,500,000 (before costs).
This will include a Priority Offer of up to 1,430,000 Shares to Jindalee share and option holders, and a Public Offer of 2,500,000 Shares to investors who have been invited by the Company or the Lead Manager to subscribe for Shares under the Public Offer.
The McDermitt Project
The McDermitt Project stands as the largest lithium deposit in the United States in terms of contained lithium, boasting an impressive 21.5Mt Lithium Carbonate Equivalent (LCE) in Mineral Resource.
Jindalee commenced its exploration efforts at this project, located in southeastern Oregon, in 2018. The initial four-hole drilling program yielded intersections with substantial widths of sediment-hosted lithium mineralisation extending over considerable distances. These findings underscored the Project’s potential to house a significantly large lithium resource.
Over the span from September 2018 to October 2022, Jindalee conducted an additional five drilling programs, involving a total of 62 holes (33 RC and 29 Diamond). These drilling efforts aimed to both infill and extend successive Mineral Resource Estimates (MRE) for the McDermitt Project.
In February of this year, the Company disclosed an updated Indicated and Inferred Mineral Resource for McDermitt, amounting to 3.00 billion tonnes at 1,340 ppm Li, equivalent to 21.5 million tonnes of Lithium Carbonate Equivalent (LCE).
Jindalee has outlined that the funds acquired through this capital raising endeavour will drive various aspects of exploration and development at the Project, encompassing drilling and exploration activities, metallurgical testwork, advancement of the Pre-Feasibility Study, heritage and environmental initiatives, as well as general working capital and offer costs.
Jindalee lodged a prospectus dated 13 October 2023 which can be read here.
JRL’s Australian Stock Exchange-listed share price is currently trading at $1.405 today (2.38pm UTC+ 8 hours).