ChemX readies for ASX listing

Aspiring battery materials producer ChemX Materials has launched a $7 million initial public offering, as part of a stock market listing expected in December.

Based in East Perth, ChemX is focused on developing high purity alumina (HPA), a base material for lithium-ion batteries and synthetic sapphire, with the latter used to manufacture electronic products such as LED lights and wristwatch faces.

ChemX is one of a handful of HPA companies based in Western Australia, with others including Altech Chemicals, FYI Resources and King River Resources – all listed on the ASX.

Through the IPO, ChemX will issue 35 million shares at 20 cents each to raise $7 million and accept oversubscriptions of up to 5 million shares, worth an extra $1 million.

Ventnor Capital is lead manager to the raising.

The offer closes on November 30, with ChemX expected to start trading on December 20.

It will list with a market capitalisation of between $17 million and $18 million.

ChemX will use some of the IPO proceeds to explore a portfolio of tenements in South Australia prospective for halloysite, kaolin and manganese, as well as advance its ‘HiPurA’ process to produce HPA and cathode precursor salts for use in lithium-ion batteries.

As part of that process, the company is proposing to build a pilot plant in Perth, capable of producing between 200 tonnes and 400t of HPA each year.

A pre-feasibility and optimisation study for the plant is expected to start in January.

Construction and commissioning is targeted for early 2023.

The company’s SA tenements, which form the Kimba project, are located 100 kilometres west of Whyalla, on the Eyre Peninsula.

Additional IPO proceeds will be used to pursue strategic project acquisitions, advance research initiatives and fund working capital.

The company's board includes non-executive chair Kristie Young, managing director David Leavy, executive director Stephen Strubel, and non-executive director Warrick Hazeldine, who was appointed today.

Mr Hazeldine is the chairman of Global Lithium Resources, which listed on the stock exchange earlier this year, and of communications firm Cannings Purple, which he co-founded in 2004.