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:
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:
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.”
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