OD6 eyes Esperance for rare earths

Rare earths newcomer OD6 Metals has had a subdued start to its first trading session on the ASX, with shares changing hands around 4 cents lower than its initial public offer price.

The company made its debut on the local bourse this afternoon following an $8 million IPO led by Canaccord Genuity, which had 40 million shares on offer to investors at 20 cents each.

OD6 plans to use proceeds from the raise to start an exploration and definition program at its two wholly-owned projects in Esperance: Splinter Rock and Grass Patch.

Subject to drill rig availability and approvals, the campaign is set to commence at Splinter Rock in the coming weeks.

OD6 has long-term plans to develop the Esperance deposits into a revenue-generating operational mine, describing the area as a “rapidly emerging” clay-hosted rare earths province.

OD6 managing director and former Kalium Lakes boss Brett Hazelden said listing was a significant milestone for the business.

“The successful, strongly supported IPO provides validation of the company’s enormous potential,” he said in a statement.

“We now focus attention on our planned program of works, targeting definition of a future maiden rare earth resource statement.”

OD6 Metals shares closed the day down 22.5 per cent to trade at 16 cents.