Jindalee Lithium (ASX: JLL) has achieved a significant milestone with US regulatory approval for its McDermitt project, alongside advancing its US SPAC listing and becoming debt-free after raising capital.
US Approves McDermitt EPO
Jindalee Lithium has received crucial US government approval for an Exploration Plan of Operations (EPO) at its McDermitt Lithium Project. This approval paves the way for a major infill drilling programme set to commence in the second half of 2026.
Core drilling results from 2025 confirmed strong lithium and magnesium intercepts at shallow depths, including 1951 ppm lithium and 5.23% magnesium from hole R92. Further metallurgical testwork on magnesium showed high recoveries of up to 97%, with the company now evaluating downstream opportunities for magnesium value creation.
US$500M SPAC Listing Progress
Jindalee is making significant progress with its US Elemental SPAC transaction with Constellation, which holds an implied equity value of US$500 million. This SPAC framework is anticipated to provide substantial funding to advance the McDermitt project towards its Feasibility Study.
The McDermitt project continues to benefit from strong US government engagement, including a Department of Energy (DoE) CRADA and its designation as a FAST-41 project, underscoring its strategic importance for US critical minerals supply.
Debt-Free After Capital Raise
Jindalee Lithium has strengthened its balance sheet, becoming debt-free after repurchasing all Mercer convertible notes. The company successfully completed capital raises through a placement and Share Purchase Plan (SPP), generating approximately US$9.5 million.
As of the reporting period, Jindalee Lithium held US$6.5 million in cash and listed securities, providing a robust financial position for ongoing project developments.
Broader Project and Market Context
McDermitt is positioned as a leading US lithium resource with a project lifespan estimated at 63 years and an existing resource of 1.8 million tonnes Lithium Carbonate Equivalent (LCE). The project's C1 costs for the first 40 years are forecast at US$8,670 per tonne.
The company notes a recovery in lithium carbonate prices, with forecasts of US$14,850 per tonne by late 2025 and US$23,566 per tonne by early 2026, driven by robust demand from Electric Vehicles (EVs) and Battery Energy Storage Systems (BESS). In Australia, Jindalee plans follow-up drilling at Clayton North and maintains a 20% interest in the Sherlock Joint Venture.
The Takeaway
Jindalee Lithium is progressing multiple strategic initiatives, notably securing crucial US regulatory approval for McDermitt and advancing a US listing, whilst strengthening its financial position. These developments de-risk project advancement and enhance its ability to fund future studies.
