A publicly traded company in Australia is doing a new SPAC deal for lithium projects in America. But, why?

What’s happening:

  • Lithium exploration company HiTech Minerals has entered into a business combination with Constellation Acquisition Corp I (OTC: CSTAF) to become a publicly traded company

Why it matters:‍

  • HiTech Minerals owns the McDermitt Project located on the border of Oregon and Nevada which is widely considered to be one of the largest lithium deposits in the United States with a mineral resource of approximately 21.5M tonnes of lithium carbonate equivalent

Going deeper:‍

  • HiTech Minerals is a wholly owned subsidiary of Jindalee Lithium (ASX: JLL) and also owns the Clayton North lithium project which is located in Nevada
  • Following the successful completion of the SPAC transaction between HiTech Minerals and Constellation Acquisition Corp I and a listing on the Nasdaq the new combined company will be renamed US Elemental

The intrigue:‍

  • Jindalee Lithium will roll over 100% of their equity interest in the McDermitt Project and the Clayton North lithium project in exchange for owning roughly 80% of US Elemental following the successful closing of the SPAC deal with Constellation Acquisition Corp I

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