en.Wedoany.com Reported - HiTech Minerals, a subsidiary of Australia's Jindalee Lithium, announced on Thursday that it will merge with Constellation Acquisition Corp. I to form a new company, US Elemental, and plans to list on the Nasdaq. The merger transaction is valued at $571 million and is expected to be completed in the second half of this year.
US Elemental will integrate HiTech Minerals' McDermitt deposit located on the border of Oregon and Nevada, which contains 21.5 million tonnes of lithium carbonate equivalent. According to a 2024 pre-feasibility study, the project development requires approximately $3 billion in capital expenditure, and the listing will provide partial funding support. Jindalee will transfer all of its equity in HiTech into the new company and is expected to hold at least 80% of the shares in US Elemental. The new company's stock ticker will be ULIT.
The McDermitt project has a planned mine life of 63 years, with an annual production of 47,500 tonnes in the first 10 years. The post-tax net present value is $3.2 billion (at an 8% discount rate), with an internal rate of return of 18%. In addition to the main deposit, US Elemental will also hold Jindalee's lithium assets in Nevada, such as Clayton North. To advance development, the company is planning a financing round of $20 million to $30 million, with Antarctica Capital committing $4 million.
The lithium mining industry is currently experiencing a recovery. Due to mine disruptions in China and an export ban in Zimbabwe, the price of the battery metal lithium has risen nearly 40% this year. Chandra Patel, Chairman of Constellation, stated that demand for battery materials continues to grow, and the importance of developing local supply is becoming increasingly prominent. The McDermitt project and the team's experience will form a long-term growth platform.
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