Jindalee Resources Closes Public Offer of Capital Raise After 3 Days

19 October 2023 11:52

Jindalee Resources (ASX:JRL) announced on the 16th of October plans for a $5.5 million capital raise through a $3.5 million public offer and $2 million priority offers through existing shareholders, with the aim of advancing exploration at their wholly owned McDermitt Lithium Project whilst providing general working capital.

However after only three days the Company reports it has successfully raised the public off portion of the placement, closing the capital raise early.

The Capital Raise

Jindalee has received offers in excess of the maximum $3.5 million (before costs) amount sought in the public offer, with the shares purchased expected to be issued to successful applicants on the 20th October.

The Company reports over 150 new sophisticated, professional and retail investors will join its share register following the public offer.

The Priority Offer portion of the placement opened on October 12th which entails up to 1,430,000 Shares to Jindalee share and option holders, anticipated to close on the 27th this month.

The McDermitt Project

Jindalee has outlined that the funds acquired through this capital raising endeavour will drive various aspects of exploration and development at the McDermitt Lithium 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.

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 lodged a prospectus dated 13 October 2023 which can be read here.

JRL’s Australian Stock Exchange-listed share price has risen 3.759% and is currently trading at $1.380 (11.45am UTC+ 8 hours).

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