Jindalee Resources Ltd (ASX:JRL) has raised A$3.5 million after closing its public offering early.
The company, which will rename to Jindalee Lithium Ltd subject to shareholder approval, is also raising up to A$2 million via a priority offer to eligible security holders, which is scheduled to close on October 27.
The total raise of A$5.5 million includes 3,930,000 new ordinary shares issued at of A$1.40 per share.
Shares subscribed for under the public offer are expected to be issued to successful applicants on October 20, 2023. The offer will see more than 150 new sophisticated, professional and retail investors join the company’s share register.
Jindalee’s priority offer includes up to 1,430,000 shares to eligible Jindalee share and option holders. The company intends to issue shares under the priority offer (including shares already applied for as at today’s date) on October 31, 2023.
Use of funds
Funds raised will be used to advance exploration and development of Jindalee’s 100%-owned McDermitt Lithium Project in the US and provide general working capital.
The breakdown is as follows:
The funding will go to several advanced exploration and development initiatives for McDermitt, including:
- drilling and exploration activities;
- metallurgical test work;
- advancing the pre-feasibility study;
- heritage and environmental; and
- general working capital and offer costs.
McDermitt is the largest lithium deposit in the US by contained lithium with 21.5 million tonnes lithium carbonate equivalent (LCE) in mineral resource.