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.”
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.
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.