Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) will close its entitlement offer and top-up offer at 5pm AWST on Friday, August 2, 2024, with the critical metals company eyeing off proceeds of approximately A$3.14 million.
Funds from the issue will be used to complete an optimised pre-feasibility study (PFS) for the McDermitt Lithium Project in the US, which is due for completion in the fourth quarter of 2024.
The offer price is $0.30 per new share, with an entitlement ratio of one new share for every six existing shares.
“One of very few opportunities”
Jindalee’s CEO Ian Rodger said: “We warmly invite eligible shareholders to participate in Jindalee’s entitlement and top-up issues.
"This is one of very few opportunities Jindalee shareholders have had to subscribe for shares since the company listed on the ASX in 2002 and we are very excited to be applying the funds raised to advance the optimised PFS at the McDermitt Lithium Project.
"As the largest lithium resource in the USA, Jindalee is confident that McDermitt is a company-making asset with outstanding strategic value as America seeks to develop domestic battery material value chains.”
The McDermitt Lithium Project on the Oregon-Nevada border has a resource of 3 billion tonnes at 1,340ppm lithium for 21.5 million tonnes of lithium carbonate equivalent, which is currently the largest lithium deposit in North America.
Offer details
Eligible shareholders who held shares at the close of trading on July 15, 2024, can participate in the entitlement offer.
Shareholders will also receive two free attaching options for every two new shares issued, with the attaching options intended to be admitted to quotation on ASX:
- Short-term option - exercise price of $0.40 and expiry date of June 30, 2025.
- Long-term option - exercise price of $0.60 and expiry date of June 30, 2027.
As well as the optimised PFS, proceeds will also be used for ongoing US activities, corporate costs, general working capital and offer-related costs.
Top-up offer
Due to the interest shown in the entitlement offer, Jindalee is also offering a top-up offer in which eligible shareholders who take up their entitlements in full may apply for additional shares in excess of their full entitlement.
Applications for additional shares may be subject to scale-back depending on the final number of additional shares available.
Eligible shareholders can apply for new shares in the entitlement and top-up offers by visiting the Jindalee Lithium Investor Hub: https://investorhub.jindaleelithium.com/investment-offer/19