Pioneer Lithium begins trading following oversubscribed IPO

Pioneer Lithium (ASX: PLN) the newest explorer hunting for lithium riches in Canada has successfully listed on the Australian Securities Exchange (ASX).

Operated by a high-quality board and management and assets located in highly prospective regions of Canada, Pioneer’s listing follows the completion of a highly sought after $5 million initial public offer (IPO), which closed oversubscribed.

Executive chairman, Robert Martin, said Pioneer features a team with significant project development experience.

The company’s extensive portfolio includes strategically located lithium Root Lake (90% owned) and Lauri Lake (100% owned) projects in Ontario and the LaGrande (100% owned) lithium project in Quebec’s world-class James Bay region.

“We are delighted to begin our journey as an ASX-listed lithium company, underpinned by an exceptional lithium portfolio in two of Canada’s most exciting mining provinces,” Mr Martin said.

“The outstanding support we have seen from investors to the Pioneer IPO is testament to the quality of both the projects and the team we have assembled.

“With a market cap of ~$9.4m and an enterprise value of just $4.3 million at listing, Pioneer Lithium represents an exceptional opportunity for investors. We have a well-developed strategy to accelerate our growth pathway and, thanks to the strategic location of our assets at the epicentre of the North American battery materials industry, we are ideally placed to become a lithium developer and operator in the near term. We are all looking forward to the exciting journey ahead.”

New executive appointment

At the same time as it was listing, the company also confirmed the appointment of the highly-regarded mining executive Clinton Booth as chief executive officer.

Mr Booth, who played an important role in promoting the company’s initial public offering, brings more than 20 years’ experience in the mining and energy sectors to Pioneer, including senior positions with Fortescue Future Industries and Galaxy Resources (now Allkem).

While with Fortescue Future Industries, Mr Booth undertook several roles covering early-stage development activities including global land and tenement acquisition, overseeing global permitting and approvals, and heading project development activities in North America.

Most recently, he was the Global Head of Integration where he had responsibility for the transition and integration of M&A and joint venture transactions.

He gained significant recent Canadian experience with Galaxy Resources, where he identified and delivered significantly improved financial returns for the feasibility study of the James Bay hard rock project.

Root Bay to get initial attention

Mr Booth said the company’s immediate focus will be on the strategically located Root Lake lithium project which sits directly between Green Technology Metals’ (ASX: GT1) Root Bay and Morrison/McCombe lithium deposits, and its James Bay Quebec LaGrande Project.

“The asset base which Pioneer has secured is second-to-none. The Root Lake Project is one of the most strategic lithium assets I have ever seen in my career, being located between two existing deposits, with compelling potential for future exploration to extend this known lithium mineralisation onto Pioneer’s ground,” he said.

“Previous exploration has already confirmed the presence of high-grade spodumene mineralisation and we are looking forward to a period of significant news-flow in the weeks and months ahead as our maiden exploration campaign ramps up.

“With a clear focus to become a developer and miner, we are looking forward to playing a significant role in the rapidly growing North American battery materials market.”