In a bid to generate new funding to develop the Oregon-based McDermitt Lithium Project, Jindalee Resources Ltd (ASX:JRL) has launched a $5.5 million capital raise effort, combining a $2 million priority offer to eligible shareholders and a $3.5 million public offer.
The company intends to issue up to just under 4 million new ordinary shares at an issue price of $1.4 per share.
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.
Capital raise details
Jindalee is keen to advance McDermitt at pace, as it represents the largest lithium deposit in the US by contained lithium, holding a 21.5-million-tonne lithium carbonate equivalent (LCE) mineral resource.
The company will offer up to 1.43 million Shares to Jindalee share and option holders in a priority offer, for those registered as of 5:00pm on October 12, 2023.
A public offer of 2.5 million shares will also be available to investors invited by the company or the lead manager to subscribe for shares.
Both offers will close on October 27, 2023, with all shares to be issued by October 31.
Jindalee’s directors also intend to participate, subscribing for an aggregate of 175,000 shares subject to shareholder approval at the next annual general meeting.
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited is acting as Lead Manager for the capital raising.