Huge lithium deposit due on Nasdaq after $571M deal

A company holding one of the largest U.S. lithium development assets that’s already part of the government’s FAST-41 speedy permits stream is set to list on the Nasdaq following a $571-million merger. 

HiTech Minerals, a subsidiary of Australia’s Jindalee Lithium (ASX: JLL), said Thursday it’s combining with Constellation Acquisition Corp. I (US-OTC: CSTAF), a shell company backed by Antarctica Capital of New York, to create the new firm called US Elemental.

“The transaction is expected to position the company to access the capital and strategic partnerships needed to advance development,” Jindalee CEO Ian Rodger said in a release. The creation of US Elemental would help “unlock the potential” of the McDermitt deposit located in Oregon and across the Nevada border, he said. 

The deal, expected to close in this year’s second half, and listing would help raise some of the expected $3 billion capex to develop the resource of 21.5 million tonnes in lithium carbonate equivalent, according to a 2024 pre-feasibility study. Jindalee will roll over its full interest in HiTech and is expected to hold about 80% or more of US Elemental, which will trade under the ticker ULIT.

Jindalee’s stock closed 2% higher in Australia, for a market capitalization of A$50.2 million ($35.6 million). Constellation’s shares gained two-thirds to trade at 25¢ in New York, capitalizing it at $101.3 million.

Unlocking lithium

The company previously announced plans to create a US-listed entity last September.

The proposed mine has an after-tax net present value of $3.2 billion (at an 8% discount rate) and an 18% internal rate of return, according to the 2024 report. Production is planned at 47,500 tonnes per year during the first decade in a life of 63 years. 

“Demand for battery materials continues to grow and there is increasing emphasis on developing domestic sources of supply,” Chandra Patel, chairman and CEO of Constellation and managing partner of Antarctica Capital, said in the release. “The McDermitt project, combined with the team’s experience and the scale of the resource, creates a strong platform for long-term growth.”

In addition to McDermitt, US Elemental will also hold Jindalee’s other American lithium assets such as the Clayton North project in Nevada. To help advance these projects, the company is contemplating a capital raise of $20-$30 million, including $4 million from Antarctica Capital. The finance company reported $8.3 billion in assets under management at the end of 2024. 

The US Elemental deal follows a resurgence in the lithium mining space, with price of the battery metal rising by nearly 40% this year on the back of Chinese mine disruptions and an export ban by Zimbabwe.