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- Oceana Lithium (OCN) lists on the ASX today, after raising $6 million via an oversubscribed initial public offering (IPO)
- The IPO saw around 30 million shares issued at a price of 20 cents and included a $1 million investment from Sichuan Yahua Industrial Group, the third-largest lithium hydroxide producer globally
- Funds from the IPO will be directed towards aggressive exploration of the company’s owned 100 per cent owned Solonopole lithium pegmatite project in Ceara, Brazil
- OCN shares are in the grey and trading at 30 cents per share at 3:32 pm AEST
Oceana Lithium (OCN) has listed on the ASX today, after raising $6 million via an oversubscribed initial public offering (IPO).
The IPO saw the company issue around 30 million shares at a price of 20 cents each.
It included a $1 million investment from cornerstone investor Sichuan Yahua Industrial Group, which is the third-largest lithium hydroxide producer globally and a major supplier to electric vehicle manufacturers such as Tesla, BYD Auto and Sinopec.
“We were heavily oversubscribed in fact we had to send back $5.5 million, not something an entrepreneur likes to do, but we had a cap on it of $6 million so we’re very pleased with the way it’s been received,” Chairman Jerome (Gino) Vitale said.
Funds from the raise will be directed towards aggressive exploration of the company’s 100 per cent owned Solonopole lithium pegmatite project in Ceara, Brazil.
The company said significant pegmatite mineralisation has been identified along an approximate 17 kilometre corridor within the company’s exploration leases.
Surface mapping and sampling have now commenced at the project following a site visit from Executive Director Sebastian Kneer.
Money from the IPO will also be spent on the Napperby lithium pegmatite project in the Arunta Pegmatite field in the Northern Territory. Oceana completed a reconnaissance site visit in late April.
“There are some unique features about the company, not the least of which is the team that we’ve been able to assemble. We’ve got Sebastian Kneer who heads up our exploration effort as our executive director,” Mr Vitale said.
“Both Sebastian, and a colleague of his, Brian Talbot, who comes across as a technical consultant for the company were senior executives of the Galaxy Resources team and they of course were recently taken over by Orocobre, now known as Allkem. So we’ve got an excellent very highly experienced exploration team.
“We’re playing the long game if you like and if one looks around at the supply demand situation it’s very clear that demand is way out-stripping supply.”
In its first hours of trading, OCN shares were in the grey and trading at 30 cents per share at 3:32 pm AEST.
