Lithium exploration company Kali Metals listed on the ASX on Monday and recorded a strong opening day, trading A$7.5-million and closing at A$0.435 a share – an increase of 75% from its initial public offering (IPO) price of A$0.25 a share.

The IPO, which was oversubscribed, raised the maximum A$15-million.

Kali was spun-out of TSX-listed Karora Resources and ASX-listed Kalamazoo Resources, which remain the top two shareholders in Kali with 22.1% and 20.2% upon listing.

Chris Ellison rounds out the top three shareholders with his private company Wabelo, holding a 4.8% stake.

“It is truly an exciting day for Kali shareholders, with the company successfully listing as a publicly traded company on the ASX. We now look forward to creating shareholder value through the successful exploration of our portfolio of lithium projects in Western Australia, New South Wales and Victoria,” said MD Graeme Sloan.

He said Kali had received an overwhelming response from potential investors, which was a reflection of the quality of its project portfolio, the board, its technical team and the current appetite to explore for lithium.

The Kali board comprises Sloan as MD, Kalamazoo chairperson and CEO Luke Reinehr as nonexecutive chairperson, supported by nonexecutive directors Paul Adams, John Leddy and Simon Coyle.

Kali has significant lithium exploration tenure, totalling 3 854 km² across its Pilbara, Higginsville and Lachlan Fold Belt project areas.

Two of the company’s three lithium projects in the Pilbara are fully funded by SQM as part of a joint venture with the Chilean major.

“It is a great time to become an ASX-listed lithium exploration company with activity in the sector high and the long-term fundamentals for the commodity strong. With the emergence of lithium as one of the most important critical minerals that will enable the global energy transition, this is an ideal time to provide investors with an opportunity to invest in a company with world-class projects in Tier 1 locations,” said Sloan.

Meanwhile, Kali on Monday also announced that Stuart Peterson had been appointed GM for geology, having most recently worked at Global Lithium Resources.

For Kalamazoo, the spin-out of the lithium assets means the company will now focus on progressing its gold projects in Western Australia and Victoria, in addition to pursuing new opportunities.

Kalamazoo currently has exploration programmes under way in Victoria and has started planning for its 2024 programmes across its project portfolio, said Reinehr.