Jindalee Resources Limited (ASX:JRL) has received firm commitments from sophisticated and professional investors to raise A$9 million via the placement of 6 million shares at A$1.50 per share.
The company’s board has expressed its pleasure in welcoming a number of leading institutions onto the register.
Following the completion of the placement, the company will have a cash balance of approximately A$10 million and around A$2.2 million in liquid assets.
The company is, therefore, well-funded to further accelerate exploration and development studies at its flagship McDermitt Lithium Project in the US.
Funds will also be used to advance the Clayton North Lithium Projects in the US and its gold and nickel projects in Western Australia.
“Ensures Jindalee is well-funded”
Jindalee chairman Justin Mannolini said: “We are pleased to welcome a number of leading Australian institutions who have recognised the strategic value and potential of the McDermitt Lithium Project onto Jindalee’s register.
“This strongly supported and successful capital raising ensures that Jindalee is well-funded to continue to develop the McDermitt project.”
Resource upgrade
Mannolini said: “Our recent drilling has returned broad shallow lithium intercepts, both from within the existing inferred mineral resource and from considerable distances outside of the existing resource.
“These results have the potential to significantly increase the size of the existing resource and convert much of the current resource from inferred to indicated status.
“We look forward to providing a resource upgrade in late March or early April with a potential scoping study to follow.”
Use of funds
In conjunction with existing cash, the funds raised through the placement will be used in:
- Drilling, metallurgical test-work, development studies and permitting at McDermitt;
- Initial drilling at Clayton North; and
- Drilling at Widgiemooltha.
Placement details
The placement has been undertaken using the company’s available placement capacity with 1,469,603 new shares issued under ASX Listing Rule 7.1 and 4,530,397 new shares issued under 7.1A.
Jindalee expects to issue the new shares on or around March 19, 2021, with allotment occurring on March 22, 2021.
The issue price for the placement represents a 1.3% discount to the company’s last trading price and a 10% discount to the 15-day volume-weighted average market price (VWAP).
Blue Ocean Equities and Curran & Co acted as joint lead managers and bookrunner to the placement.