Jindalee to create US-listed lithium miner

[Redator]

Australia’s Jindalee Lithium (ASX: JLL) has signed a letter of intent to merge the US subsidiary that holds its flagship McDermitt project with a special purpose acquisition company (SPAC) sponsored by private equity firm Antarctica Capital to create a new US-listed company.

The LOI, which is non binding, is part of a strategic partnering process that Jindalee initiated in April to secure US funding for its project located on the Oregon-Nevada border, after being named amongst the first 10 “transparency projects ” under the Trump administration’s FAST-41 initiative for streamlined permitting.

The Australian miner said it followed a “competitive process involving multiple parties and proposals” before reaching a deal with Constellation Acquisition, the SPAC company.

Under the LOI terms, Jindalee will receive 50 million new shares in the combined company valued at $10 per share, equating to an equity value of $500 million. The deal also contemplates a capital raise of $20-30 million or more, with affiliates of Antarctica committing about $4 million.

Upon completion, the new company is expected to list on a US national securities exchange, with
Jindalee shareholders retaining a majority interest, expected to be more than 80%.

Commenting on the transaction, Jindalee’s managing director and CEO Ian Rodger said: “We have experienced a high level of interest from US investors following the Trump administration’s strong focus on increasing domestic production of critical minerals and the recent designation of McDermitt as a FAST-41 transparency project.”

In its press release, Jindalee noted that the LOI includes an initial 90-day exclusivity period, during which the parties will complete due diligence and negotiate a binding business combination agreement, targeted for the fourth quarter of 2025.

Completion will remain subject to customary closing conditions, including regulatory and shareholder approvals, with a potential close in the first half of 2026.

Largest US lithium resource

The new listing would have direct US capital exposure to what Jindalee calls the “largest lithium resource” in the country in McDermitt, containing around 21.5 million tonnes of lithium carbonate equivalent (LCE). The deposit is positioned 35 km from Thacker Pass, the most advanced US lithium project in development.

A pre-feasibility study last year showcased a potential 63-year mine on the doorsteps of America’s auto industry, with an estimated annual production of 47,500 tonnes within the first ten years. Its after-tax net present value was estimated at $3.2 billion, assuming an 8% discount, with an internal rate of return of 17.9%. The $3 billion project has a payback period of roughly five years.

To advance the project towards the feasibility stage, Jindalee has engaged government agencies regarding commercial and technical support, including the potential for attractive funding packages. It currently has a grant application afoot with the US Department of Defense.