This lithium miner is set to list on the ASX next month following its IPO, and counts a Tesla supplier among its key investors

We could be in for a new ASX debutant…

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Key points

  • Lithium prices have just begun to level off in recent times, capping an enormous rally
  • Now talks of a potential new listing onto the ASX have investors keeping a close eye on the sector
  • Oceana Lithium is in the sights of lithium giant Yahua International, reports say, leading to a potential ASX listing

Lithium stocks have propelled north over the last 12 months as the battery metal soars to record heights on commodities markets.

In fact, lithium carbonate prices have only just taken their first backward step in more than a year. The commodity is now fetching 482,500 Chinese Yuan per tonne, down from 497,500 last month.

Despite the slight pullback, its climb has managed to blitz the benchmark S&P/ASX 200 Index (ASX: XJO) this year to date.

TradingView Chart

A new debutant?

Lithium carbonate remains up by 436% over the 12 months to date, outpacing nearly all other commodity baskets.

So with whispers of a potential lithium newcomer to the ASX, it's no wonder that investor circles are murmuring with excitement.

"Tesla supplier Yahua International will take a cornerstone investment in Oceana Lithium, which is looking to raise up to $6 million ahead of a listing next month," The Australian reports today.

"A pair of former Galaxy Resources executives are on board at Perth-based Oceana, which will be looking to advance lithium projects in Brazil and the Northern Territory."

According to reports, Oceana could release up to 30 million ordinary shares on a valuation of 20 cents apiece, hoping to raise $5-6 million in the process.

Based on these and other valuation inputs, this would value Oceana at $12.7 million, The Australian notes.

In its prospectus, Oceana said it will allocate more than 50% of the raised funds to its Brazilian project with less than $1 million budgeted for its Napperby project in the NT.

Here's what the company had to say (as quoted by The Australian):

Both Solonopole and Napperby are considered highly prospective for lithium and associated minerals, given their locations within known pegmatite and lithium provinces in Ceara state, Brazil and the Northern Territory.

Both projects have undergone previous mineral exploration including geological mapping and geochemical sampling and, in the case of Solonopole, small scale artisanal mining by previous owners.

The public offering is reportedly set to finalise on April 22, after which a potential listing is scheduled for May 27.

With global commodity markets still reeling amid the volatility of 2022's geopolitical storms, it remains to be seen if the listing has come at the right time or not. Ultimately, the market will decide.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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