Jindalee Lithium

Jindalee Secures Up to $6.7M in Funding to Advance McDermitt Lithium Project

Jindalee Lithium Limited (Jindalee, the Company) is pleased to announce that it is seeking to raise up to $6.7 million (Capital Raise), with total firm commitments of $4.1 million, to allow Jindalee to progress work at the Company’s McDermitt Lithium Project (McDermitt, Project), which hosts the largest lithium deposit in the USA1 (Table 1).


  • Jindalee is seeking to raise $6.7 million, through a combination of a Placement, Entitlement Issue and Convertible Notes, with the potential to raise up to a further $9.0 million in Convertible Notes. Total firm commitments of $4.1 million
  • Firm commitments for a Placement to raise gross proceeds of approximately $0.6 million from institutional investors, directors and management, at an issue price of $0.30 per share, including a $0.5 million commitment from Mercer Street Global Opportunity Fund II, LP and other funds managed by US-based C/M Capital Partners, LP (Mercer Street)
  • Opportunity for eligible shareholders to participate via a non-renounceable Entitlement Issue on a 1 for 6 basis to raise up to approximately A$3.1 million on the same terms as the Placement
  • Strong support indicated from directors and management in the Entitlement Issue with pre- commitments received for approximately A$0.5 million
  • Every two shares under the Placement and Entitlement Issue will be accompanied by two free- attaching options in total (one ‘Short Term Option’ and one ‘Long Term Option’), with Placement options subject to shareholder approval
  • Funding facility of up to $12 million via Convertible Securities received from Mercer Street with an initial tranche of $3.0 million ($1.5 million of which is subject to shareholder approval) and additional potential funding of up to $9.0 million by mutual agreement
  • Funds to be directed to deliver value optimisation opportunities in the McDermitt PFS, which are expected to improve capital intensity and operating costs (versus initial PFS scope) and provide runway to achieve several key value catalysts in H2 2024, including the optimised PFS and potential for non-dilutive US government grant funding
The Capital Raise consists of three elements:
  • a placement of approximately $0.6 million to institutional investors, directors and management at $0.30 per fully paid ordinary share (Share) with Attaching Options (Placement);
  • a non-renounceable rights issue to existing shareholders on a 1 for 6 basis at $0.30 per Share with Attaching Options pursuant to a prospectus (Prospectus), to raise up to approximately $3.1 million (Entitlement Issue); and
  • a funding facility including:
    • $3.0 million investment for Convertible Notes, with $1.5m advanced on closing with a further $1.5 million investment subject to shareholder approval
    • Additional potential funding of up to $9 million for Convertible Notes

Further details in relation to the Placement, Entitlement Issue and Convertible Notes are available in Schedules 2 and 3.

Support from US Institutional Investors, Board and management

US-based fund manager C/M Capital Partners LP, as manager of Mercer Street Global Opportunity Fund II, LP and other funds (together, Mercer Street) have agreed to provide the Company with a $0.5 million equity investment via the Placement.

The Company has also entered into a funding facility with Mercer Street of up to $12 million. Mercer Street will fund an initial Convertible Note tranche of $3.0 million ($1.5 million of which is subject to shareholder approval). In addition, Mercer Street may fund optional further tranches of up to $9.0 million by mutual agreement and subject to shareholder approval or the Company having available placement capacity, demonstrating the value Mercer Street sees in the long-term prospects of Jindalee and its flagship McDermitt Lithium Project.

Furthermore, Jindalee has secured formal commitments from directors and management, including from Mr Lindsay Dudfield (Executive Director and largest shareholder), totalling minimum subscriptions of approximately $0.6 million in the Placement and Entitlement Issue. Director participation in the Placement will be subject to shareholder approval.

Use of Proceeds

Funds raised pursuant to the Capital Raise, will be applied as follows:

  • Completion of the McDermitt Pre-Feasibility Study (PFS) with the incorporation of new value optimisation opportunities, which are expected to improve capital intensity, operating costs and production outcomes vs the initial scope of PFS (see Schedule 1 for further details);
  • Continuing US activities including baseline studies, permitting and stakeholder engagement; and
  • Corporate costs, general working capital and costs associated with the Capital Raise.

Upcoming Value Catalysts

Jindalee has continued to progress McDermitt throughout 2024, with the Capital Raise to allow the Company to execute on several potential value catalysts in the second half of CY2024. These include:

  • Tribal Agreements (Q3)
  • US Government technical cooperation agreement (Q3)
  • Production of battery grade lithium carbonate from test work (Q3)
  • Update on POSCO test work currently underway in Korea (Q3)
  • Completion of optimised McDermitt PFS (Q4)
  • Potential award decision for non-dilutive US Government grant funding (Q3/Q4)
  • Commence strategic partnership/investment process (Q4)

Jindalee’s CEO Ian Rodger commented:

“We are very pleased to have secured the support of Mercer Street as a long-term funding partner, alongside the continued backing of our existing shareholders. We firmly believe that the funding initiatives announced today will support Jindalee’s work programs for the foreseeable future. This funding will enable us to deliver several key value catalysts in the second half of 2024, including the optimised McDermitt PFS and a potential award decision for US Government grant funding.

Additionally, we are excited by the value optimisation opportunities at McDermitt, which are underpinned by our recent metallurgical test-work which yielded better than expected results. Our goal is to reduce capital intensity and operating costs, thereby improving early returns while still delivering a multi-decade production outlook for battery-grade carbonate, from what we believe is an emerging top-tier, generational asset. We are committed to incorporating these opportunities into the PFS and look forward to sharing the outcomes later this year.”

Mercer Street’s Managing Partner Jonathan Juchno added:

“Mercer Street is pleased to support Jindalee Lithium. We see a significant value disconnect between Jindalee's current market valuation and the strategic potential of the McDermitt Lithium Project. With strong long-term prospects for the lithium market as the US builds out its battery value chain, we are confident in the Jindalee team's ability to advance the Project through key milestones expected in the coming months."


Click here for the full ASX Release

This article includes content from Jindalee Lithium 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.

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Game-changing, economically significant lithium resource for North American battery supply chain

Resolution Minerals Ltd  To Develop U.S. Government Engagement Strategy with Clewett Global Services

Resolution Minerals Ltd To Develop U.S. Government Engagement Strategy with Clewett Global Services

Adelaide, Australia (ABN Newswire) - Resolution Minerals Ltd (ASX:RML) (FRA:NC3) (OTCMKTS:RLMLF) is pleased to announce the selection of Clewett Global Services as external affairs advisers to support the development of the Horse Heaven Antimony-Gold-Silver-Tungsten project in Idaho, USA.

Highlights

- Engagement in Washington D.C. is a critical step in positioning RML as a trusted partner in the U.S. critical minerals supply chain

- Resolution to consider applying for U.S. Department of Defense (DOD) funding to expedite Horse Heaven Project in Idaho

- Neighbouring Perpetua Resources (PPTA.NAS) was fast-tracked for development in April 2025, and received up to US$74 million in DOD funding, highlighting strong U.S. Government commitment and support for antimony and other critical metal projects

- By aligning with U.S. Government strategic priorities, RML is actively enhancing its ability to progress Horse Heaven on a faster schedule

- Antimony, Silver, Gold and Tungsten trading at record-high prices

CLEWETT GLOBAL SERVICES APPOINTED TO WORK WITH RESOLUTION TO DEVELOP U.S. GOVERNMENT ENGAGEMENT STRATEGY

The Horse Heaven Project is located directly adjacent to NASDAQ-listed Perpetua Resources' $2 billion Stibnite Gold and Antimony Project, which recently gained final record of decision approval from the U.S. Forest Service.

Horse Heaven has strong gold, antimony and silver mineralisation in two highly prospective structurally controlled mineralised corridors, and includes past-producing antimony, tungsten and gold mines.

Historical exploration results from Horse Heaven are highly encouraging and indicate similar geological characteristics to the neighbouring Stibnite project.

Given the importance of antimony to the U.S. Government's critical minerals strategy, Resolution Minerals is excited to develop the Horse Heaven Project and will be actively seeking the support of the U.S. Government to expedite its progress.

Founding Partner of Clewett Global Services, Todd Clewett, is a seasoned external affairs executive with a track record of success in engaging decision makers in Washington D.C. regarding mining and critical minerals projects. Clewett formerly headed up the external affairs function for both Newmont Corporation and Fortescue.

Background

The U.S. government has prioritised domestic and allied sources of key minerals such as antimony, tungsten and gallium recognising their importance to defense applications and renewable technologies.

Until now, the U.S. has relied mainly on China for the supply of many critical metals. Following China's total ban on exports of these metals to the U.S. in late 2024, a priority of the new Administration is to shore up its own domestic supply chains of these materials.

Fast-41 Program

The FAST-41 program, established by Title 41 of the Fixing America's Surface Transportation Act (FAST Act), is a program designed to improve the timeliness, predictability, and transparency of the federal environmental review and permitting process.

FAST-41 is designed to streamline and expedite the permitting process for infrastructure and mining projects deemed nationally significant. FAST-41 can offer benefits to project developers, including increased predictability, transparency and faster decision-making.

Some projects currently covered under FAST-41 include:

- Perpetua Resources' (PPTA.NAS) Stibnite Gold Project in Idaho

- Stillwater Palladium & Platinum Project in Montana

- Jindalee Resources' (ASX:JLL) McDermitt Lithium Project in Oregon

- BPH and RIO's Resolution Copper Project in Arizona

- South32's (ASX:S32) Hermosa Critical Minerals Project in Arizona

Resolution Minerals' efforts to participate in the FAST-41 program follow the precedent set in April this year by next-door neighbour, NASDAQ-listed Perpetua Resources (PPTA.NAS), whose Stibnite Gold Project in Idaho became the first mining project accepted under FAST-41, and by ASX-listed Jindalee Lithium Limited (ASX:JLL), whose McDermitt Lithium Project in Oregon was also successfully fasttracked under FAST-41 in April.

2025 Budget Reconciliation Bill ('Big Beautiful Bill')

The proposed 2025 Budget Reconciliation Bill includes US$2.5 billion to support U.S. production of critical minerals via the National Defense Stockpile. In addition, there is US$500 million allocated to the Department of Defense Credit Program for loans, loan guarantees, and technical assistance aimed at developing reliable sources of critical minerals - both within the U.S. and among key international allies.

Congress is expected to pass this bill (in some form) by the end of July 2025. Resolution has commenced plans to pursue all its available options to apply for funding that may become available upon passing of this proposed bill.

Resolution is considering opportunities under the U.S. Department of Defense's Title III and Industrial Base Analysis and Sustainment (IBAS) programs, which support the development of reliable and resilient supply chains for critical minerals.

RML's Executive Director, Aharon Zaetz commented:

"We are extremely honoured for Todd Clewett to want to work with us. We feel very excited that he shares the enthusiasm for the Horse Heaven project and sees the massive potential here. Todd's experience in working with governments to develop mining projects will be an invaluable asset to RML.

Todd's experience, knowledge and network in the White House provides him with an extremely rare and unique skillset that RML shareholders are extremely privileged to benefit from.



About Resolution Minerals Ltd:  

Resolution Minerals Ltd (ASX:RML) is a mineral exploration company engaged in the acquisition, exploration and development of precious and battery metals - such as antimony, gold, copper, and uranium.

Resolution Minerals Ltd Listed on the ASX in 2017 and has a broad portfolio of assets, such as the Drake East Antimony-Gold Project in north-eastern NSW and George Project prospective for silica sand and uranium.



Source:
Resolution Minerals Ltd

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McDermitt Project Fast-Tracked Under U.S. FAST-41 Initiative

McDermitt Project Fast-Tracked Under U.S. FAST-41 Initiative

Jindalee Lithium (JLL:AU) has announced McDermitt Project Fast-Tracked Under U.S. FAST-41 Initiative

Download the PDF here.

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