Shares of Jindalee Resources (ASX:JRL) have dropped to their lowest level since February 19, 2021, slumping by as much as 18.6%.

The lithium mining company announced it is undertaking a capital raising effort with the goal of securing up to A$5.5 million.

The issue price of A$1.40 per share registers an 18.6% discount to the closing price on October 11.

The funds obtained from the capital raising will be appropriated towards advancing the exploration and development of McDermitt lithium project, among others.

This slump has marked the company’s largest intraday percentage loss since April 12, 2021.

Following the recent stock market close, Jindalee Resources' stock is down 8.8% year to date.

Jindalee Resources is an Australian company focused on lithium mining and exploration.