Jindalee Lithium Targets $1M via Share Purchase Plan at 55 Cents per Share
Jindalee Lithium has launched a $1 million Share Purchase Plan at 55 cents per share, complementing a recent $8 million placement, to fund its McDermitt Lithium Project and repay convertible securities.
- Share Purchase Plan (SPP) targets up to A$1 million at A$0.55 per share
- SPP open to eligible Australian and New Zealand shareholders from Oct 23 to Nov 20, 2025
- Participants receive options exercisable until November 2028 alongside shares
- Funds to advance McDermitt Lithium Project, repay convertible securities, and support US SPAC transaction
- Offer is non-renounceable and subject to scale-back if oversubscribed
Capital Raising Strategy
Jindalee Lithium Limited (ASX, JLL) has officially dispatched its Share Purchase Plan (SPP) offer documents to eligible shareholders in Australia and New Zealand, aiming to raise up to A$1 million. This initiative follows closely on the heels of a successful A$8 million placement to sophisticated and institutional investors, both priced at 55 cents per share. The SPP opens on October 23, 2025, and closes on November 20, 2025, providing shareholders an opportunity to increase their holdings without brokerage fees.
Incentives and Terms for Shareholders
Eligible shareholders can subscribe for parcels ranging from A$2,000 to A$30,000 worth of shares. Notably, participants in the SPP will also receive one option for every share issued under the plan, exercisable at A$0.825 until November 2028. These options add an attractive upside potential for shareholders willing to deepen their investment during this phase.
Use of Funds and Strategic Implications
The capital raised through the placement and SPP will be directed primarily towards advancing the McDermitt Lithium Project, including exploration drilling and permitting activities. Additionally, funds will be used to repurchase outstanding convertible securities held by Mercer Street Global Opportunity Fund II and C/M Capital Partners, reducing debt and improving the company’s capital structure. The proceeds will also support costs related to a previously announced US special purpose acquisition company (SPAC) transaction and general working capital needs.
Offer Mechanics and Regulatory Compliance
The SPP is non-renounceable, meaning shareholders cannot transfer their rights to subscribe to others. The company reserves the right to accept oversubscriptions and apply scale-backs if demand exceeds the targeted amount. While the SPP is not currently underwritten, Jindalee may consider underwriting arrangements depending on shareholder appetite. The offer complies with ASIC regulations and excludes shareholders outside Australia and New Zealand, particularly those in the United States, due to securities law restrictions.
Looking Ahead
Shares issued under the SPP will rank equally with existing ordinary shares, and allotment is expected by November 27, 2025, with trading commencing shortly thereafter. This capital raising phase marks a critical juncture for Jindalee as it seeks to accelerate development at McDermitt while managing its financial obligations and positioning itself for growth in the competitive lithium sector.
Bottom Line?
Jindalee’s SPP launch signals a pivotal step in funding its lithium ambitions, with shareholder uptake and option exercises set to shape its near-term trajectory.
Questions in the middle?
- Will Jindalee secure underwriting for the SPP if demand falls short?
- How will the repayment of convertible securities impact the company’s debt profile and shareholder dilution?
- What milestones at the McDermitt Lithium Project are expected following this capital injection?
