New lithium play Chariot Corporation has a difficult start to life on the ASX as its shares languish

US-focused lithium explorer Chariot Corporation has had a disappointing first day on the ASX, with its shares trading more than a third lower than its initial public offering price.

East Perth-based Chariot started trade on Friday at 25¢, finishing the day at 26¢. This is well below its IPO price of 45¢, during which it raised $9 million. At the IPO issue price Chariot’s market capitalisation was $67.5m.

Chariot has a suite of early-stage lithium projects across the US, with its core focus on the Black Mountain project in Wyoming. In August the company received formal approval from the US Bureau of Land Management to execute phase 1 of the Black Mountain drilling program.

Its projects are prospective for both hard rock lithium in Central Wyoming and claystone-hosted lithium in Nevada and Oregon. Chariot also holds lithium exploration licenses in Western Australia.

Chariot managing director Shanthar Pathmanathan said the company offers ASX investors exposure to the nascent and rapidly growing US lithium market.

“With the funds raised from the IPO, we are pursuing the first discovery of a large hard rock lithium resource in Wyoming, USA,” he said.