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JINDALEE LITHIUM LTD (JLL) - Unlocking America's Lithium Future

• Andrew Musgrave

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Ever wondered how a small Australian explorer becomes a key player in America's critical minerals strategy? Jindalee Lithium's story might just be the blueprint.

The race for battery metal security is reshaping global mining, and Jindalee has positioned itself at the center of America's lithium ambitions. In this compelling conversation with CEO Ian Rodger, we dive deep into the McDermitt Project – one of the largest lithium resources in the United States, strategically located on the Oregon-Nevada border.

What makes this discussion particularly timely is Jindalee's recently announced SPAC transaction that values McDermitt at a staggering US$500 million while allowing the company to retain approximately 80% ownership. This clever structure opens doors to deep US capital markets without surrendering control, creating a dedicated vehicle to advance the project toward production. As Ian explains, "The natural long-term owners of this project are US investors," highlighting the strategic wisdom behind this corporate maneuver.

The McDermitt Project's significance extends beyond its size. Its designation under FAST-41 (one of just ten projects nationwide) and collaborative agreements with the Department of Energy underscore its importance to American mineral security. 

After two challenging years for lithium markets, green shoots are emerging – perfect timing as Jindalee transitions from explorer to developer. For investors seeking exposure to the critical minerals space, this ASX-listed company offers a compelling entry point to America's lithium future. Subscribe now to stay updated on Jindalee's journey and discover more strategic opportunities reshaping global supply chains.

Andrew Musgrave Host

Welcome back to ASX Briefs, where we spotlight Australia's most strategic companies reshaping global supply chains. And today we're joined by Ian Rodger, Managing Director and CEO of Jindalee Lithium Limited, owner of the McDermitt Lithium Project in Oregon, one of the largest lithium resources in the United States. 
 Ian, thanks for joining me today and welcome to the ASX Briefs podcast. 

Ian Rodger Guest

Thanks for having me, Andrew. 

Andrew Musgrave Host

Now, Ian, there's plenty going on with the company at the moment, but for investors that may not know a lot about Jindalee Lithium, can you just provide a brief overview? 

Ian Rodger Guest

Yeah, sure can. Jindalee was listed on the ASX since about 2002, also trades on the OTCQX in the United States. We've got a really rich history in terms of project generation, generating a lot of value for shareholders over time. As a result, we've got a very sort of tight and strong high net worth shareholder base in Australia, and that includes our founder and executive director and larger shareholder, Lindsay Dudfield, who owns about 25% of the company. Today the company's focused on the McDermitt project on the border of Oregon and Nevada. We discovered that in 2018 and have built that out into one of the largest lithium resources in the United States. Our pre-feasibility study at the end of last year really indicated a large, long life, low-cost asset potential of producing battery grade lithium chemicals in the United States, so a very strategically important asset.

Andrew Musgrave Host

Okay, now looking at McDermitt. So, you've signed an LOI to list McDermitt via a SPAC at a US $500 million valuation. So, what does this unlock for Jindalee and why is now the right time? 

Ian Rodger Guest

Yeah, our strategy has always been to Americanise McDermitt. The natural long-term owners of this project are US investors. The SPAC transaction, which assigns an equity value of US $500 million, as you pointed out, gives us a dedicated US-listed vehicle and opens the door to deep US capital markets, which are obviously the largest in the world. Importantly, it provides a less dilutive pathway to fund the feasibility workstream, which is the next step at McDermitt, and positions McDermitt to further benefit from US government programs and incentives. Equally important, Jindalee is expected to retain at least 80% of that NewCo and that allows us to maintain control and preserve upside for ASX shareholders. It's a structure that strengthens the balance sheet, or is expected to over time, and should provide a good platform for future development financing without giving away the asset. 

Andrew Musgrave Host

Okay now McDermitt is now designated under FAST-41 and backed by US agencies. So, can you walk us through the significance of these endorsements? 

 

Ian Rodger Guest

For sure. Being one of the first 10 projects designated under the FAST-41 transparency list, you know was a significant milestone and recognition of its importance to the asset. It gives us federal coordination, or better federal coordination across permitting agencies, with the objective of speeding up the decision-making with regards to permitting decisions, so it's a really positive step. On top of that, we signed a cooperative research and development agreement with part of the Department of Energy last year to work on the project, looking at ways to unlock value. So, I think you know their sort of endorsements for the project can indicate that it's, you know, very strategic. It's a project of strategic importance for the United States and we expect, you know, projects like McDermitt to get, you know, more attention from, in terms of funding and whatnot from US federal agencies as well as we go forward. 

Andrew Musgrave Host

Okay, and just looking at that funding that those agencies may be able to bring to you, and obviously on the back of the one Big Beautiful Bill that got announced in the US a few months back, what kind of funding or co-investment is realistically on the table for McDermitt? 

Ian Rodger Guest

Yep, you're dead right there. In terms of the Big Beautiful Bill, it's expected to unlock further funding, and you know the detail on that will be becoming more evident over time. But our focus, what I can say is our focus is on near-term grant funding point of view, because it can co-fund and extend equity dollars further in a less dilutive way to accelerate pre-development activities, which clearly, as we're heading into a feasibility study, that's incredibly important. Longer term, the bill is also expected to unlock loans and whatnot, of which have been a key part of the success from our more advanced peers, both in Lithium Americas and Ioneer, who are obviously also an ASX listed company. They've achieved long life cheap loans from the US government, so this beautiful bill includes funding for those as well. So that remains more of a medium-term focus for us, with the near-term focus on grant funding for pre-development works. 

Andrew Musgrave Host

Okay, now just looking at some of the other projects. Thacker Pass, which is only 35 kilometres from McDermitt, has received a major US investment, so how does that project's momentum shape expectations for McDermitt? 

Ian Rodger Guest

Yeah, good question, I think. Just to zoom out for a second, yeah, McDermitt Project is located in the McDermitt Caldera, an old volcano. We're down one end, Thacker Pass is down the other end, and really some academics think it's the biggest lithium resource globally, bigger than the Atacama, et cetera. But in terms of their momentum, look they’ve raised 2.3 billion dollars or thereabouts, from the US Department of Energy, through a very cheap long-life loan. They've had big investments in the order of 950 odd million dollars from General Motors. So clearly, they've demonstrated the, the template, if you like, that you know. These big, large sedimentary projects that can run for multi-decades at large production profiles are very strategically important to the US and we're obviously a few years behind them. But I think they really add a whole lot of momentum to the space and add to the playbook that we're looking to execute on. 

Andrew Musgrave Host

Okay, and beyond McDermitt, what's the strategic value of assets like Clayton North and Sherlock? 

Ian Rodger Guest

Look, our focus in the last couple of years has been primarily to unlock value out of McDermitt but, as you point out, we do have a couple of assets in the portfolio. What I would say is that as part of this SPAC transaction, we've sort of flagged that we'll continue to look at other complementary assets to add to the portfolio over time to replicate that success. 

Andrew Musgrave Host

Okay, now just to wrap things up for investors that are new to Jindalee what's the core investment thesis as you transition from explorer to US-listed lithium developer? 

Ian Rodger Guest

Well, I'll start at the high level. You know, really, strategic asset that's been, you know, endorsed from different parts of the US government. You know we're cheap on basically any basis compared to our peers, and part of that's because we're an ASX listed company with a US asset, and the SPAC transaction really just highlights the value mismatch there and the value potential. And then, you know, really there's a lot of catalysts on the horizon, both through the transaction with the SPAC transaction, but also on the project we're about to go through permitting milestone. We're working on some interesting stuff on the ground. On top of that, we're really hitting an inflection point in the lithium market. After two pretty hard years it looks like we've seen some green shoots and a market recovery, and so if you bring all that together, you know we see a real opportunity for investors in Jindalee for asymmetric returns, really starting at a low point with a lot of tailwinds that could see, you know, a significant return, and so I'd encourage investors to take a look. 

Andrew Musgrave Host

All right, Ian. Well, thanks for your time today. It's been great to chat, to get an update on where the company is, and we look forward to further updates from Jindalee Lithium in the upcoming months.
 
 Ian Rodger Guest

Thanks, Andrew.
 
 Andrew Musgrave Host

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.