Jindalee Lithium Limited is set to significantly advance its McDermitt Lithium Project, which boasts the largest lithium deposit in the USA, with a comprehensive capital raise aimed at securing up to $6.7 million. The funding strategy includes a blend of placements, entitlement issues, and convertible notes, with potential additional funding reaching up to $9.0 million.

The initial firm commitments have already secured $4.1 million. The placement involves raising approximately $0.6 million from institutional investors, directors, and management at $0.30 per fully paid ordinary share, with attached options. This placement includes significant contributions from Mercer Street Global Opportunity Fund II, LP and other funds managed by US-based C/M Capital Partners, LP.

In addition to the placement, Jindalee offers an entitlement issue, allowing eligible shareholders to participate on a 1 for 6 basis, aiming to raise up to approximately $3.1 million. Furthermore, a funding facility of up to $12 million via convertible securities from Mercer Street has been arranged, with an initial tranche of $3.0 million available immediately and additional funding contingent upon shareholder approval.

The funds from this capital raise are earmarked for several critical areas of development within the McDermitt project. Primarily, the resources will facilitate the completion of the pre-feasibility study (PFS) with new value optimization opportunities expected to improve capital intensity, reduce operating costs, and enhance production outcomes. Additional allocations will support ongoing US activities including baseline studies, permitting, stakeholder engagement, and general corporate costs.

Ian Rodger, CEO of Jindalee, expressed optimism about the new funding and the project’s future: “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. 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.”

The company anticipates several value catalysts in the latter half of 2024, such as tribal agreements, US government technical cooperation, production of battery-grade lithium carbonate, and strategic partnerships, which are expected to further enhance the project’s robustness and viability.

This strategic funding initiative not only underscores Jindalee’s commitment to advancing its lithium extraction and processing capabilities but also positions the McDermitt Lithium Project as a cornerstone for the future of lithium supply in the United States, aligning with the growing demand for renewable energy resources.

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