Jindalee Lithium Completes $8M Capital Raise, Repurchases Mercer Convertible Securities
Jindalee Lithium has repurchased all remaining convertible securities from Mercer Street Global Opportunity Fund II and C/M Capital Partners following a successful $8 million capital raise, simplifying its financial structure ahead of advancing the McDermitt Lithium Project.
- Repurchase of convertible securities from Mercer and C/M Capital Partners
- Oversubscribed $8 million capital raising completed in October 2025
- Mercer's initial investment enabled completion of McDermitt Pre-Feasibility Study
- McDermitt Project confirmed as a strategic lithium source for the US
- Balance sheet simplification strengthens Jindalee’s financial position
Jindalee Lithium Repurchases Convertible Securities
Jindalee Lithium Limited (ASX – JLL) has announced the repurchase of the remaining convertible securities held by Mercer Street Global Opportunity Fund II LP and other funds managed by C/M Capital Partners. This move follows an oversubscribed capital raising in October 2025 that secured $8 million before costs, exceeding the initial $6.1 million raise in July 2024 in which Mercer was a cornerstone investor.
Strategic Investment and Project Milestones
Mercer’s early investment played a pivotal role in enabling Jindalee to complete the Pre-Feasibility Study (PFS) for the McDermitt Lithium Project in November 2024. The PFS confirmed McDermitt as a large-scale, long-life lithium resource with significant strategic importance to the United States, particularly given the growing demand for domestic critical minerals to support energy security and defense initiatives.
Financial and Strategic Implications
The repurchase of these convertible securities simplifies Jindalee’s capital structure and strengthens its balance sheet, providing greater financial flexibility as the company advances development of the McDermitt Project. Managing Director Ian Rodger highlighted that this transaction not only reflects confidence in the company’s prospects but also acknowledges Mercer’s valuable support during a critical phase of project advancement.
Positioning for the Future
With 100% ownership and unencumbered offtake rights, Jindalee is well positioned to capitalize on the next lithium market upcycle. The company’s engagement with U.S. government agencies, including the Department of Energy and Department of Defense, underscores the strategic importance of McDermitt as a domestic lithium source. Simplifying the capital structure ahead of further development milestones could enhance investor confidence and market positioning.
Looking Ahead
As Jindalee moves forward, the focus will be on progressing the McDermitt Project towards feasibility and eventual production, while maintaining strong relationships with strategic partners and stakeholders. The recent financial restructuring marks a key step in preparing the company for these next phases.
Bottom Line?
Jindalee’s buyback of convertible securities signals a cleaner balance sheet and renewed focus on advancing McDermitt’s strategic lithium potential.
Questions in the middle?
- What were the financial terms and cost implications of the convertible securities repurchase?
- How will the simplified capital structure impact Jindalee’s funding strategy for project development?
- What further engagement or support can be expected from U.S. government agencies?