Which ASX lithium stock has soared 246% in just a month?

IPO investors are rubbing their hands in delight.

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ASX lithium stock Chariot Corp Ltd (ASX: CC9) has recorded a stratospheric rise of 246% since listing on the ASX on 27 October.

Chariot Corp shares opened at 90 cents on Tuesday, up 5.9% on yesterday's closing price of 85 cents.

The stock surged to an all-time high of $1.36 yesterday despite no official news from the company.

Let's take a look at what's been happening with this new ASX lithium stock.

ASX lithium stock shoots the lights out

Here is a snapshot of Chariot's first month of trading.

Chariot Corporation is an ASX mineral explorer based in North America. Its flagship project is the Black Mountain hard rock lithium project. It also owns the Resurgent claystone lithium project.

In its oversubscribed initial public offering (IPO), Chariot raised $9 million through the issue of approximately 20 million shares at an issue price of 45 cents per share.

Chariot will use its IPO proceeds to fund phase 1 drilling of the central portion of the Black Mountain pegmatite dike swarm.

The swarm comprises a 1 kilometre x 100 metre-wide zone of LCT pegmatite sub-crop and outcrop.

Chariot received formal approval from the United States Bureau of Land Management to execute phase 1 drilling in August.

This followed a surface geochemistry survey where 22 surface rock chip samples were collected. They returned assays of up to 6.68% Li2O with an average assay result of 2.16% Li2O.

A diamond core drill rig arrived at the site on 8 November, and drilling was to commence immediately. Chariot expects to receive the first lithium assay results in January.

ASX lithium stock price surge prompts formal query

Last Friday, the ASX issued a price query after the ASX lithium stock soared from a closing price of 42 cents on Monday, 20 November to 89 cents during intraday trading on Friday.

The stock actually went as high as $1.05 on Friday before closing at 99 cents.

The company responded by pointing to its recent listing on the ASX and its 9 November announcement about the start of drilling.

Otherwise, it said it was "not aware of any other explanation for the recent trading in its shares".

Who's behind Chariot Corporation?

The largest shareholder in this ASX lithium stock is Chariot's managing director, Shanthar Pathmanathan, who holds 19.17% of the company.

He says Chariot is pursuing the first discovery of a large hard rock lithium resource in Wyoming.

Pathmanathan was previously the CEO and managing director of Western Australia lithium explorer Lithium Consolidated, which is now Tempest Minerals Limited (ASX: TEM).

According to Chariot's website, Pathmanathan has 14 years of investment banking experience in the metals and mining, oil and gas and chemicals sectors.

Also on the board is Neil Stuart, an exploration geologist who was a founding director of Orocobre, which is now Allkem Ltd (ASX: AKE).

Motley Fool contributor Bronwyn Allen 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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