Jindalee Lithium has secured US government approval for its McDermitt Lithium Project’s exploration plan, reported strong drilling results, and extended exclusivity on a US SPAC listing valued at US$500 million.
- US Bureau of Land Management approves McDermitt Exploration Plan of Operations
- 2025 drilling yields strong lithium and magnesium intercepts from shallow depths
- SPAC transaction exclusivity extended with marketing underway to US investors
- Capital raising includes $8M placement and $1.5M oversubscribed share purchase plan
- Jindalee now debt-free after repurchasing all convertible notes
US Government Approval Boosts McDermitt Project
Jindalee Lithium Limited has reached a significant milestone with the US Bureau of Land Management granting approval for the Exploration Plan of Operations (EPO) at its 100% owned McDermitt Lithium Project, straddling the Oregon-Nevada border. This approval unlocks the potential for increased on-site activity, including a major infill drilling program scheduled for the second half of 2026, aimed at refining geological and environmental data ahead of the Feasibility Study.
Strong Drilling Results Highlight Project Potential
The recently completed 2025 drilling program delivered encouraging results, with core samples returning broad lithium intercepts accompanied by significant magnesium concentrations from shallow depths. Highlights include intercepts such as 110.6 metres at 1,519 ppm lithium and 4.8% magnesium. These results not only validate historic drilling but also underpin ongoing metallurgical testwork designed to optimise recovery rates for both lithium and magnesium, the latter now recognised as a valuable by-product with strategic importance.
Strategic Magnesium Opportunity Amid US Supply Concerns
Jindalee is advancing a value optimisation program focusing on magnesium, a critical mineral with growing demand in defence, aerospace, and automotive sectors. With China controlling the majority of global magnesium supply and the recent bankruptcy of the US’s only primary magnesium producer, McDermitt’s magnesium endowment positions it as a potential dual-product supplier. Metallurgical studies have shown promising recovery rates, and further testwork is underway to explore higher-value magnesium products, aligning with US government priorities to secure domestic critical mineral supplies.
SPAC Transaction and Capital Raising Progress
Jindalee is progressing a proposed merger of its US subsidiary, HiTech Minerals, with Constellation Acquisition Corp. I, a US special purpose acquisition company (SPAC), aiming to list on a US exchange with an indicative valuation of US$500 million. The exclusivity period for this transaction has been extended twice, reflecting ongoing negotiations and due diligence. Concurrently, Jindalee has raised approximately $8 million through a placement and $1.5 million via an oversubscribed share purchase plan, strengthening its balance sheet. The company is now debt-free following the repurchase of all convertible notes, positioning it well for the next development phase.
Market Context and Strategic Positioning
Battery-grade lithium carbonate prices have surged by around 75% since mid-2025, driven by robust demand from electric vehicles and battery energy storage systems. The US government’s recent policy initiatives and executive actions underscore critical minerals as a national security priority, with McDermitt well placed to benefit from funding and regulatory support. Jindalee’s engagement with the Department of Energy and designation under the FAST-41 initiative further highlight the project’s strategic importance.
Broader Exploration and Corporate Updates
Beyond McDermitt, Jindalee is considering follow-up drilling at its Clayton North Project in Nevada, which has shown promising lithium results, and maintains a 20% interest in the Sherlock Project in Western Australia. On the corporate front, Tristan Garthe has been appointed joint company secretary alongside Carly Terzanidis, complementing his role as Chief Financial Officer. With a strengthened capital structure and active engagement in US capital markets, Jindalee is poised to advance its lithium ambitions on multiple fronts.
Bottom Line?
Jindalee’s McDermitt project is gaining momentum with regulatory approvals, strong drilling results, and a strategic US listing pathway, setting the stage for accelerated development amid rising lithium and magnesium demand.
Questions in the middle?
- Will the SPAC transaction close on the current terms and timeline?
- How will metallurgical testwork outcomes impact the economics of magnesium production?
- What level of US government funding and support will McDermitt secure for feasibility and development?