Jindalee Lithium Secures A$8.5M Placement and A$2.5M Entitlement Offer

Capital Raise Targets McDermitt and NASDAQ Listing

Jindalee Lithium Limited (ASX:JLL) has secured firm commitments to raise approximately A$8.4 million through a placement priced at A$0.46 per share, supplemented by a non-renounceable entitlement offer targeting up to A$2.5 million, bringing total potential proceeds to around A$11 million before expenses. The capital injection aims to accelerate development work at the McDermitt Lithium Project in the US and support the proposed NASDAQ listing of its wholly owned subsidiary, US Elemental Inc.

The placement attracted strong support from sophisticated, professional, and institutional investors, including US-based institutions experienced in SPAC transactions, a key factor given Jindalee’s recent binding business combination agreement to list McDermitt on NASDAQ through US Elemental. This follows the company’s earlier binding agreement to list McDermitt on NASDAQ, which set a pro forma enterprise value of US$571 million for the new entity.

Placement and Entitlement Offer Details

The placement will issue approximately 18.5 million shares, including a conditional placement to directors pending shareholder approval, at the same price as the entitlement offer. Importantly, participants in both offers will receive attaching options exercisable at A$0.60, expiring 30 June 2029, providing potential upside if Jindalee’s valuation improves.

The entitlement offer provides eligible shareholders the right to acquire one new share for every nineteen shares held as at 13 May 2026, with no minimum subscription. Eligible shareholders will also receive attaching options on a one-for-one basis with new shares. The company has secured commitments for A$1.2 million to cover any shortfall in the entitlement offer, alongside board and executive participation amounting to approximately A$0.47 million, signalling strong internal confidence.

Use of Funds and Strategic Implications

Funds raised will primarily be deployed to advance and de-risk the McDermitt Lithium Project through exploration, infill drilling, metallurgical testwork, technical studies, and permitting. Additionally, capital will support the execution of the proposed NASDAQ listing, covering listing and transaction costs, with the remainder allocated to general working capital.

Jindalee’s managing director Ian Rodger emphasised the significance of the raise: "We are very pleased with the strong support received from a range of high-quality global institutions for this capital raising, including US-domiciled institutional investors with deep experience in SPAC transactions similar to that contemplated by our recently announced business combination agreement to list McDermitt on NASDAQ."

Shareholder Approval and Timetable

Shareholder approval will be sought for the issue of attaching options under the placement and the conditional placement to directors. Settlement of the initial placement is expected by 14 May 2026, with quotation of shares to follow shortly after. The entitlement offer will open on 18 May and close on 5 June 2026, with results announced by 15 June and new shares and options issued the same day.

The non-renounceable nature of the entitlement offer means shareholders who do not participate will see their holdings diluted by approximately 5%. The company has also reserved the right to place any shortfall shares within three months following the offer’s close.

Risks and Market Positioning

While the capital raise strengthens Jindalee’s financial position, risks remain. The proposed NASDAQ listing via a SPAC transaction carries typical uncertainties, including regulatory approvals and market conditions. The company’s direct ownership of McDermitt will convert to an indirect interest through US Elemental, potentially diluting economic exposure. Additionally, the McDermitt project itself is at an advanced exploration stage with inherent operational and market risks, including commodity price volatility and permitting challenges.

Jindalee’s recent quarterly updates highlighted ongoing exploration progress and a cash position that supports near-term activities, but the capital raise is critical to maintain momentum and fund the next phase of development and listing activities, as detailed in the quarterly activities report and drilling results announced earlier this year.