The ASX welcomed a new lithium stock today, and it's up 50%!

Investors have been getting excited about this new lithium stock today.

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The James Bay Minerals Limited (ASX: JBY) share price is taking off after hitting the ASX boards on Tuesday.

At one stage today, the ASX lithium stock was trading a massive 52% higher than its IPO listing price at 30.5 cents.

The James Bay Minerals share price has pulled back a touch since then but remains up 25% at 25 cents.

What is the new ASX lithium stock on the block?

James Bay Minerals is a lithium explorer that has secured an extensive (~224km2) and highly strategic ground position in the heart of the La Grande Greenstone Belt in Canada.

The company notes that this area has risen to prominence in recent times following several world-class lithium-pegmatite discoveries.

Its Aero, Aqua, and Joule properties are located directly along-trend from the Corvette lithium discovery, where Patriot Battery Metals Inc (ASX: PMT) recently reported a globally significant maiden inferred mineral resource estimate of 109.2Mt at 1.42% Li2O.

In addition, its Troilus property is located 5km from the Moblan lithium deposit owned by Sayona Mining Ltd (ASX: SYA). It has measured, indicated and inferred resources of 51.4 million tonnes at 1.31% Li2O.

Another positive is the ASX lithium stock has an experienced board and management team. This includes former key executives from Pilbara Minerals Ltd (ASX: PLS) and Nemaska Lithium (NMX: TSX).

James Bay Minerals IPO

The ASX lithium stock raised $6 million at 20 cents per new share through its IPO, which closed early following a strong response from new institutional and retail investors.

This gave it a market capitalisation of $12.1 million at listing.

James Bay Minerals' executive director, Andrew Dornan, commented:

We are absolutely delighted by the strong response from investors to the IPO, which saw us achieve our $6 million maximum subscription well ahead of schedule. This strong interest from investors reflects the exceptional outlook for the lithium market and the outstanding credentials of the James Bay region as a lithium exploration hotspot.

We are starting our life as a Canadian-focused lithium explorer against the backdrop of unprecedented activity within the global lithium sector. Recent major news emanating from the James Bay district vindicates our strategy to focus on the James Bay area as the next major global frontier for hard rock lithium discoveries of scale.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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