The Burley Minerals Ltd (ASX: BUR) share price has hit the ASX boards running on Wednesday.
Earlier today, the iron ore and base metals explorer and developer's shares rocketed as much as 105% to a high of 41 cents.
The Burley Minerals share price eventually closed the day 87.5% higher than its listing price at 37.5 cents.
Image source: Getty Images
Why did the Burley Minerals share price rocket higher?
Investors were bidding its shares higher today following the completion of its initial public offering (IPO). They appear to see a lot of potential in the company's Yerecoin Project in Western Australia.
The Yerecoin Project comprises two exploration licenses that cover 105.5 km2 of land close to the exciting Julimar Project owned by Chalice Mining Ltd (ASX: CHN).
According to its prospectus, exploration activities to date have defined significant JORC-compliant magnetite resources within the project totalling 247 Mt @ 29.9% Fe producing a 68.1% Fe concentrate.
In addition, it notes that a number of historical studies have also been completed and the potential for "Julimar Style" PGE-Cu-Ni mineralisation has also been established.
Given how the Chalice Mining share price is up 650% over the last 12 months thanks largely to successful exploration at Julimar, investors appear optimistic the same could happen to the company's shares if it has similar successes.
The Burley Minerals IPO
Burley Minerals raised $6 million via the issue of 30,000,000 shares at a price of $0.20 each. This gave it a market capitalisation of $12.2 million.
However, with the Burley Minerals share price charging higher today. Its market capitalisation has now climbed to almost $23 million.
The funds raised from the IPO will support current drilling of the western limb of Yerecoin Main. Management notes that there is immediate potential to extend and upgrade magnetite resources at Yerecoin Main and Yerecoin South.
There is also the potential for discovery of additional magnetite resources. Management highlights that there is an eye-shaped magnetic feature requiring investigation for presence of ultramafics and magnetite mineralisation.
This could make it one to watch in the coming months.
