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Jindalee Resources Limited (to be renamed "Jindalee Lithium Limited2”) (Jindalee, the Company) is pleased to announce that it is undertaking a capital raising comprising the issue of up to 3,930,000 new ordinary shares (Shares) at an issue price of $1.40 per Share to raise up to $5,500,000 (before costs) (Capital Raising).
- Jindalee announces a capital raising of up to $5.5 million comprised of a $2 million Priority Offer to Eligible Securityholders and a $3.5 million Public Offer.
- Funds raised to be used to advance exploration and development of the Company’s
- 100% owned McDermitt Lithium Project and provide general working capital.
- McDermitt is the largest lithium deposit in the US by contained lithium with 21.5Mt Lithium Carbonate Equivalent (LCE) in Mineral Resource1.
- Securityholders are encouraged to promptly participate by subscribing for Shares under the Priority Offer.
The Capital Raising includes a Priority Offer of up to 1,430,000 Shares to Jindalee share and option holders on the register as at 5:00pm on 12 October 2023 (Eligible Securityholders) and a Public Offer of 2,500,000 Shares to investors who have been invited by the Company or the Lead Manager to subscribe for Shares under the Public Offer (Offers).
McDermitt is the largest lithium deposit in the US by contained lithium with 21.5Mt LCE in Mineral Resource. Funds raised under the Offers will be used to advance exploration and development of the McDermitt Lithium Project, including for:
- Drilling and exploration activities;
- Metallurgical testwork;
- Advancing the Pre-Feasibility Study;
- Heritage and environmental; and
- General working capital and offer costs.
The Offers will be made using the Company’s available placement capacity under Listing Rule 7.1. The Capital Raising is not underwritten.
Jindalee has lodged a prospectus dated 13 October 2023 for the Capital Raising3 with ASIC, which is also available from the Company’s website at www.jindalee.net.
Indicative Timetable*
* The dates and times noted above are indicative only and subject to change. Any material changes will be notified by the Company to ASX. The Company reserves the right to amend any or all of these dates and times, including amending the First Issue Application Date and Closing Date of the Offers, without prior notice subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws.
** Applicants are encouraged to provide applications as soon as possible. While the indicative timetable includes a Second Issue Date, the Company reserves the right not to proceed with the Second Issue Date.
Director participation
The directors intend to subscribe for an aggregate of 175,000 Shares under the Capital Raising, subject to shareholder approval at the forthcoming Annual General Meeting of the Company (AGM).
Name change
The Company is also seeking approval at the AGM to change the name of the Company to ‘Jindalee Lithium Limited’.
Lead Manager
Canaccord Genuity (Australia) Limited is acting as Lead Manager for the Capital Raising and will receive the fees detailed in the Prospectus.
Click here for the full ASX Release
This article includes content from Jindalee Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
JRL:AU
Spodumene Pegmatite Discovery at Esperança Project in Brazil Yields LIBS Results up to 4.04% Li2O
The discovery has been made during early-stage exploration programs which include project scale geological mapping, ground reconnaissance, and soil sampling. These early-stage programs remain ongoing with further results to come over the coming weeks. The discovery supports the Company’s exploration thesis and uplifts the remaining prospectivity across all three project areas: Canabrava, Caraíbas and Esperança projects.
HIGHLIGHTS
- Artisanal excavations reveal a lithium bearing pegmatite with elongate crystalline spodumene crystals up to 50cm in length
- LIBS (Laser Induced Breakdown Spectroscopy) results of spodumene crystals return up to 18,800 ppm Lithium, or 4.04% Li2O
- Discovery provides walk up drill target for fully funded drilling campaign to begin Q1 2025
- Soil sampling and geological mapping continues across the Esperança, Canabrava and Caraíbas projects with further results due over the coming weeks
Lightning Minerals Managing Director Alex Biggs said, “I am highly encouraged by these results from Brazil. As I have spoken about, as a team we are committed to discovery and completing our works in a diligent and structured manner, the proof of which is in these results. The Company is progressing its projects in Brazil quickly and cost effectively and generating significant results for the business which we feel will be transformational. I am proud of and congratulate our geology teams both in Australia and Brazil who have conducted themselves in a professional and astute manner which has been crucial in making a discovery such as this. This is a great first step for us in Brazil and is testament to the prospectivity of the region as I have discussed previously. We look forward to drilling in Q1 2025 and further results to come imminently from all three project areas in Brazil. I would also like to thank our shareholders who have supported our vision and exploration strategy. As a Company we are firmly committed to the lithium thematic and firmly committed to Brazil where we see significant potential moving forwards”.
Lithium Discovery at Esperança Project
During geological mapping fieldwork conducted in mid-November 2024 field geologists encountered a previously unknown historical artisanal mine within the Esperança project area. The site presented with a small access which opened into a set of sub vertical shafts sunk several meters into schists of the Salinas formation. Upon investigation the geology team has discovered pegmatitic lithologies in the walls of the excavations, of which the suite of minerals indicates inclusion of macro crystalline (up to 50cm) elongate crystals of spodumene as shown in Figure 1(a) and Figure 1(b).
Figure 1a (left): Brazilian geologist Vitor Araujo Alves showing the spodumene rich portion of the zoned pegmatite discovered at the Esperança Property. Figure 1b (right): Large elongate spodumene crystals (Spd) up to 50cm in length showing homogeneous growth patterns amongst a quartz (Qtz) and Feldspar (Fdsp) rich matrix
The Company’s geologists have collected selective mineral specimen grab samples in sample VLM207 (Figure 2). Six separate minerals have been analysed via a SciAps Z-903 hand-held LIBS (Laser-Induced Breakdown Spectroscopy) device which has returned lithium endowment of up to 18,800 ppm lithium, which equates to a lithium oxide percentage of 4.04% Li2O.
The SciAps Z-903 handheld LIBS device is considered a qualitative analysis technique only and is used as an in-field preliminary check to establish if a mineral is lithium-bearing. Certified laboratory assays are required to provide accurate, quantitative analysis. A table of the six SciAps Z-903 handheld LIBS results testing the spodumene crystals is shown in Table 1. A full table of results are presented in Appendix 2, Table 2.
While the current field observations indicate that the mineral identified is a lithium-bearing mineral, the percentage of lithium produced from the LIBS analyser does not correlate to an accurate quantitative measurement of the lithium concentration of the mineral itself, or to the overall grade of the pegmatite.
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This article includes content from Lightning Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
