Jindalee Lithium is pushing ahead with its McDermitt Lithium Project in the US, securing shareholder approval for a NASDAQ listing via US Elemental and raising $10.9 million to fund drilling and testwork. The project aims to deliver both lithium and magnesium, aligning with US critical minerals priorities.
- US Elemental NASDAQ listing planned with $571M enterprise value
- Shareholders approve transaction targeting Q4 2026 completion
- Capital raise of $10.9M supports drilling and metallurgical work
- Magnesium by-product testwork advances alongside lithium development
- Exploration Plan approved but faces environmental legal challenge
US Elemental NASDAQ Listing Progress
Jindalee Lithium Limited (ASX:JLL, OTCQX: JNDAF) has taken a major step towards listing its McDermitt Lithium Project on NASDAQ through its US subsidiary, US Elemental Inc. The company lodged an S-4 registration statement with the US Securities and Exchange Commission in June 2026, marking a critical milestone in the planned business combination with Constellation Acquisition Corp. I, a US SPAC. This transaction implies a pro-forma enterprise value of approximately US$571 million for US Elemental, with Jindalee shareholders approving the deal at a general meeting in June. The listing is targeted for Q4 2026, aiming to position McDermitt within a US-listed platform to access capital markets and benefit from critical minerals policy support.
Capital Raise Fuels Project Advancement
To fund the upcoming drilling program and ongoing metallurgical testwork, Jindalee completed a placement and entitlement offer raising a total of A$10.9 million. The capital raise included approximately 23.6 million new shares issued at A$0.46 each, with attaching options exercisable at A$0.60, expiring in June 2029. Proceeds will support a drilling campaign scheduled to commence in September 2026, focusing on infill drilling designed to upgrade resource classifications and provide fresh samples for geotechnical and metallurgical studies. The company ended the quarter with approximately A$13.6 million in cash, providing over four quarters of funding for its operations.
Magnesium By-Product Development Advances
Beyond lithium, Jindalee is exploring the commercial potential of magnesium as a strategic by-product from McDermitt. With China controlling around 90% of global magnesium supply and the US domestic producer US Magnesium LLC having filed for bankruptcy in 2025, magnesium has emerged as a critical mineral alongside lithium. Jindalee’s recent testwork successfully produced fertiliser-grade magnesium sulphate (Epsom salt) from leachate samples, and the company is now evaluating processing routes to higher-value magnesium compounds, including potential precursors for primary magnesium metal. These efforts aim to position McDermitt as a dual-product project aligned with US critical minerals priorities, although commercial viability and further workstreams remain under assessment.
Permitting and Legal Challenges
The US Bureau of Land Management approved Jindalee’s Exploration Plan of Operations (EPO) for McDermitt in December 2025, allowing increased on-site exploration activities. However, this approval faces a legal challenge from environmental nonprofit organisations alleging insufficient environmental review. Jindalee, through its subsidiary HiTech Minerals, has intervened in support of the BLM. Importantly, no injunction has been granted, and drilling preparations continue with state permits expected ahead of the September start. The company remains confident in the robustness of the permitting process but acknowledges the litigation introduces some uncertainty.
Environmental Stewardship Collaboration
In June 2026, Jindalee’s US subsidiary signed a Memorandum of Understanding with RESOLVE, a nonprofit experienced in stakeholder engagement on environmental and social issues. The partnership aims to explore a voluntary Stewardship Area near McDermitt to support conservation alongside responsible lithium development. Funding for stewardship measures would be linked to project milestones, though no binding commitments have been made. This initiative reflects growing attention to balancing critical mineral development with environmental outcomes in the region.
Strategic Positioning Amid US Government Support
The McDermitt project is well placed within a US policy environment increasingly focused on securing domestic critical minerals supply chains. Recent US government actions include multi-billion-dollar funding initiatives, strategic stockpile solicitations for battery-grade lithium carbonate, and executive orders prioritising domestic sourcing for defence materials. Jindalee continues to engage with US agencies to explore co-funding opportunities for the McDermitt feasibility study and related workstreams, leveraging its designation under the FAST-41 initiative and a Cooperative Research and Development Agreement with the Department of Energy.
Other Assets and Market Context
Jindalee’s Clayton North Project in Nevada, near the only current US lithium producer Albemarle’s Silver Peak operation, remains under consideration for follow-up drilling after promising lithium intercepts in 2021. In Australia, the company holds a 20% stake in the Sherlock Project, though no recent work was reported. Lithium carbonate prices have surged from lows near US$8,300/t in mid-2025 to peaks around US$29,000/t in May 2026, driven by tightening supply and growing demand from electric vehicles and battery energy storage systems. Despite some recent price easing, the market is expected to remain in deficit through 2030, reinforcing the strategic importance of projects like McDermitt.
Bottom Line?
Jindalee’s McDermitt project is advancing on multiple fronts, capital, permitting, and product diversification, yet the pending legal challenge and ongoing SEC review pose timing uncertainties ahead of the NASDAQ listing.
Questions in the middle?
- Will the environmental lawsuit delay McDermitt’s drilling schedule or impact permitting outcomes?
- How commercially viable will magnesium production prove alongside lithium at McDermitt?
- What impact will US Elemental’s NASDAQ listing have on Jindalee’s access to US capital markets?