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Jindalee Resources raises $620,000 in entitlement offer to progress McDermitt Lithium Project drilling

The company plans to undertake the drilling later this month with the intention of increasing the current inferred mineral resource and exploration target range.

Jindalee Resources Ltd - Jindalee Resources completes entitlement offer after raising $620,000 advancing McDermitt Lithium Project drilling
The shortfall offer of 399,733 shares has closed heavily oversubscribed

Jindalee Resources Limited (ASX:JRL) has completed a 1 for 20 non-renounceable pro-rata entitlement offer of new fully paid ordinary shares to raise A$620,000.

The entitlement offer closed on October 16 after receiving acceptances of more than 1.543 million new shares, leaving a shortfall of 399,733 shares.

Eligible shareholders were provided an opportunity to subscribe for the shortfall and this offer closed heavily oversubscribed.

The number of shortfall shares to be issued to those eligible shareholders who subscribed will be scaled back pro-rata to their existing shareholding.

"Strong position" to pursue drilling

Chairman Justin Mannolini said: “The board is grateful for the ongoing support of Jindalee’s loyal shareholders.

“The completion of this capital raising places Jindalee in a strong position to pursue the next round of resource definition drilling at the McDermitt Lithium Project in the United States and to advance our Australian projects in a prudent and systematic manner.”

McDermitt drilling

The company has plans for a 21-hole drilling program at the McDermitt project in Oregon and this has been approved by the Bureau of Land Management (BLM).

This drilling is aimed at upgrading the current inferred mineral resource to the indicated status ahead of a possible scoping study.

Jindalee expects to start the drilling later this month, subject to availability of suitable drill rigs.

Tesla commitment

Recent announcements by Tesla Inc (NASDAQ: TLSA) regarding its commitment to invest in the localisation of its cathode supply chain and production in the US have underlined the importance of very large sediment-hosted lithium deposits like McDermitt.

The McDermitt project is strategically placed with respect to Tesla’s Gigafactory.

Quick facts: Jindalee Resources Ltd

Price: 0.83 AUD

ASX:JRL
Market: ASX
Market Cap: $37.1 m
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