Lithium Plus Minerals share price explodes 180% on ASX debut

What a start it has been for the Lithium Minerals share price.

Key points
  • Lithium Plus shares skyrocket 188% to 72 cents
  • The company successfully raised $10 million to fund its exploration activities at the Bynoe Lithium Project
  • Bynoe is located next to Core Lithium's world-class Finniss Lithium Project

The Lithium Plus Minerals Ltd (ASX: LPM) share price is trailblazing its debut on the ASX today. This comes after the lithium explorer provided an update in regards to its capital raise.

At the time of writing, Lithium Plus shares are up an astounding 188% to 72 cents.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

Lithium Plus announces successful listing on ASX

In today's statement, Lithium Plus advised it has successfully raised $10 million which reached the maximum targeted subscription amount in new equity funds.

Notably, Suzhou CATH Energy Technologies Co Ltd (CATH) conducted a $2.2 million cornerstone investment.

CATH is a subsidiary of CATL, the world's largest electric vehicle battery manufacturer.

In total, 97 million Lithium Plus shares were listed at 25 cents apiece to eligible investors.

The register composition comprises 43% of board and management, 9% from CATH, and 48% making up "other" investors.

The raised funds allow the company to pursue exploration activities at its wholly-owned Bynoe Lithium Project in the Northern Territory.

The Bynoe Project is located adjacent to Core Lithium Ltd's (ASX: CXO) Finniss Lithium Project.

Lithium Plus stated that the Bynoe Project tenements are home to a similar geological setting to Finniss. Several of the key Bynoe prospects are located directly along strike from Core's BP33 deposit.

Recent drilling at BP33 returned high-grade spodumene rich intersections including 57.35 metres at 1.83% Li2O and 51 metres at 1.63% Li2O.

Lithium Plus executive chairman, Dr Bin Guo commented:

We are delighted to have successfully reached this significant point in the Lithium Plus journey. The IPO process has provided a strong validation of the outright quality of the Bynoe Project, as recognised by all participating investors including our cornerstone IPO subscriber, CATH.

We now look forward to delivering upon the substantial potential of Bynoe and our other key tenements. That process commences in coming weeks with the planned start of drilling at the Lei and Cai Prospects. We are now simply excited to get started on aggressively exploring this world-class package of lithium ground.

More on the Lithium Plus

With operations based in the Northern Territory, Lithium Plus is focused on five projects within two highly prospective areas.

They include its flagship Bynoe Project and Wingate Project located in the Bynoe area, with the Barrow Creek, Spotted Wonder, and Moonlight Project situated in the Arunta province.

Based on today's price, Lithium Plus commands a market capitalisation of roughly $31.67 million.

Motley Fool contributor Aaron Teboneras 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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