Jindalee Lithium (ASX:JLL) raises $8 million to advance McDermitt Project and SPAC transaction

Jindalee Lithium (ASX:JLL)has completed an $8 million private placement, supported by Australian and US institutional investors, to fund drilling and metallurgical testwork at its flagship McDermitt Lithium Project in the United States.

The raise also provides working capital to progress a proposed special purpose acquisition company (SPAC) transaction aimed at a US listing.

Highlights

• $8 million raised at $0.55 per share via a well-supported placement.

• One-for-one attaching options with a 50% premium exercise price of $0.825, expiring November 2028.

• $1 million Share Purchase Plan (SPP) offered to eligible shareholders on identical terms.

• Proceeds to fund exploration, metallurgical work, note repayment, and SPAC-related costs.

• L1 Capital Global Opportunities Master Fund signs non-binding term sheet for a potential US$100 million equity line of credit linked to the proposed SPAC merger.

The placement includes 14.3 million new shares, issued within the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Settlement is expected to occur on or before 23 October 2025.

Managing Director and CEO Ian Rodger said the strong take-up from investors demonstrated growing international confidence in the company’s strategy and the McDermitt project’s importance within the North American critical minerals landscape.

“We are very pleased with the strong support for this Placement and to welcome a number of new Australian and US investors to the register, reflecting growing confidence in Jindalee and the strategic importance of McDermitt to US critical mineral supply,” he said.

The accompanying Share Purchase Plan (SPP), targeting up to $1 million, allows eligible shareholders in Australia and New Zealand to acquire up to $30,000 worth of new shares at the same $0.55 issue price.

Participants will also receive one attaching option per share on identical terms to the placement options. The SPP closes on 20 November, with results expected on 27 November and trading of new shares commencing on 28 November.

Proceeds from the combined capital raising will be directed towards advancing drilling to increase geological confidence and provide metallurgical samples, as well as repurchasing the balance of convertible securities held by Mercer Street Global Opportunity Fund II LP.

This move will simplify the company’s capital structure and strengthen its balance sheet. MST Financial and GBA Capital acted as joint lead managers to the placement.

The capital injection comes as Jindalee Lithium continues to pursue a merger with Constellation Acquisition Corp. I or a similar US-listed vehicle.

A non-binding term sheet signed with L1 Capital contemplates a US$100 million equity line of credit, conditional on the successful completion of the SPAC transaction and listing on a US national exchange.

The proposed facility would provide future funding flexibility for McDermitt, though it remains subject to due diligence and final documentation.

The McDermitt Project, situated in Oregon and Nevada, is one of the largest lithium deposits in the United States, positioning Jindalee as a potential contributor to America’s efforts to develop domestic battery supply chains.

The project’s scale and location have placed it within the spotlight of the US critical minerals policy framework, particularly as automakers and battery producers seek secure, non-Chinese sources of supply.

The placement represents another step toward aligning Jindalee with US capital markets, following its September announcement of a non-binding letter of intent to list McDermitt on a US exchange.

With the new funding secured, the company is well placed to continue technical work and corporate restructuring needed to support the proposed transaction.

If successful, Jindalee would join a growing cohort of Australian explorers seeking dual exposure to US investors and capital flows linked to the energy transition.

In a sector increasingly defined by jurisdictional security and downstream integration, the McDermitt development remains strategically placed to capture institutional attention across both sides of the Pacific.

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