Australian mineral exploration firm Jindalee Lithium (AU:JLL) has teamed up with blank-check company Constellation Acquisition Corp I (CSTAF) to create lithium development company U.S. Elemental. Both firms plan to take the new company public in the second half of this year at an enterprise value of about $571 million, with the firm expected to list on Nasdaq under the ticker “ULIT”.
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New Lithium Developer to Tap into Surging Prices
The special-purpose acquisition company (SPAC) arrangement comes at a time when President Donald Trump’s push to reduce the U.S. reliance on China for its critical mineral supplies has revived interest in early-stage mining projects and improved capital flows into the sector.
The planned initial public offering (IPO) also appears geared at tapping into the surge in the price of lithium and lithium carbonate, the processed form of the metal used in manufacturing batteries and in medicine as a mood stabilizer.
U.S. Elemental Set to Hold Major Lithium Deposit
In a statement, HiTech Minerals, the wholly owned subsidiary of Jindalee that is spearheading the deal, noted that the goal with the creation of the company is to help boost lithium supply in the U.S. to fulfill growing demand for battery production, electrification, and energy storage applications.
As part of the deal, HiTech Minerals plans to transfer 100% of its assets in the U.S. into the company, with Jindalee retaining a majority stake in the combined entity.
Some of these assets include the McDermitt Lithium Project in Oregon and the Clayton North Project in Nevada. The former project boasts mineral resources of about 21.5 million tons of lithium carbonate equivalent and is described as “among the largest lithium deposits in the United States.”
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