Jindalee Raises $1.5M via SPP to Advance McDermitt Lithium Project
Jindalee Lithium has successfully raised $1.5 million through an oversubscribed Share Purchase Plan, exceeding its $1 million target to fund the McDermitt Lithium Project and a US SPAC transaction.
- SPP raised $1.5 million, exceeding $1 million target
- 2.72 million shares issued at $0.55 each
- Options issued exercisable at $0.825 until 2028
- Funds to advance McDermitt Project and US SPAC plans
- Strong shareholder demand led to pro-rata scaling
Strong Shareholder Support Drives Oversubscribed SPP
Jindalee Lithium Limited (ASX, JLL) has announced the successful completion of its Share Purchase Plan (SPP), raising $1.5 million; 50% above its initial $1 million target. The company issued 2,720,065 fully paid ordinary shares at $0.55 each, alongside options exercisable at $0.825 with a 2028 expiry. This oversubscription reflects robust investor confidence in Jindalee’s strategic direction and the value of its McDermitt Lithium Project in the United States.
Capital to Accelerate McDermitt Project and US Market Entry
The funds raised will be directed towards advancing exploration drilling and metallurgical testwork at McDermitt, one of the largest lithium resources in the US. Additionally, the capital will support working capital requirements as Jindalee pursues a proposed listing via a special purpose acquisition company (SPAC) transaction in the United States. This move aligns with growing demand for domestic critical minerals supply chains in the US, bolstered by government engagement including the Department of Energy.
Balanced Allocation and Future Option Issuance
Due to strong demand, applications exceeding $5,000 were scaled back on a pro-rata basis to ensure fair allocation among shareholders. Eligible participants received one option per share allotted at no upfront cost, with further options to be issued to placement participants pending shareholder approval at the upcoming general meeting on 10 December 2025. This approach underscores the company’s commitment to rewarding shareholder loyalty while managing dilution prudently.
Strategic Positioning Ahead of Lithium Market Upswing
Jindalee’s Managing Director Ian Rodger expressed gratitude for the overwhelming shareholder support, highlighting the strategic importance of the McDermitt Project. With a recently completed Pre-Feasibility Study confirming the project’s scale and cost advantages, Jindalee positions itself as a compelling lithium developer ahead of the anticipated market upcycle. The company’s unencumbered offtake rights and 100% ownership further enhance its appeal in a sector increasingly focused on secure, sustainable supply.
Bottom Line?
Jindalee’s oversubscribed SPP not only boosts its balance sheet but also sets the stage for critical next steps in US market entry and project development.
Questions in the middle?
- How will the upcoming shareholder meeting impact the approval of option issuance to placement participants?
- What is the timeline and likelihood of completing the proposed US SPAC transaction?
- How will McDermitt’s development progress influence Jindalee’s valuation amid evolving lithium market dynamics?
