- Jindalee Resources (JRL) has received firm commitments to raise $9 million via a placement of six million shares to sophisticated and professional investors
- The placement comes at an issue price of $1.50 per new share
- Following the completion of the placement, the company will have a cash balance of approximately $10 million and close to $2.2 million in liquid assets
- The company expects to issue the new shares on March 19, 2021, with allotment occurring on March 22
- Jindalee Resources is up 11.8 per cent, trading at $1.70
Jindalee Resources (JRL) has received firm commitments to raise $9 million via a placement of six million shares to sophisticated and professional investors.
The placement comes at an issue price of $1.50 per new share.
Following the completion of the placement, the company will have a cash balance of approximately $10 million and close to $2.2 million in liquid assets.
The funds raised will go towards drilling, metallurgical test work, development studies and permitting at its lithium sediment project in the United States, McDermitt, as well as initial drilling at Clayton North, plus general working capital and expenses.
“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,” said Jindalee Chairman, Justin Mannolini.
The placement has been undertaken using the company’s available placement capacity with 1,469,603 new shares issued.
The issue price for the placement represents a 1.3 per cent discount to the company’s last trading price and a 10 per cent discount to the 15-day volume-weighted average market price.
The company expects to issue the new shares on or around March 19, 2021, with allotment occurring on March 22.
Jindalee Resources is up 11.8 per cent, trading at $1.70 at 1:35 pm AEDT.