Nico Resources (ASX:NC1) paces 80% on ASX debut

Metals X Limited (ASX:MLX) demerged battery metals entity, Nico Resources Limited (ASX:NC1) has gained whopping 82.49% on its debut trade day on ASX. NC1 shares saw high buying interest in the three hours of trade from 12 to 3 PM AEDT. NC1 finally closed trade at AU$0.365 each.

What does Nico Resources do?

• Nico Resources derives its name from its operational focus area, Nickel and Cobalt metal exploration.
• Nico is thus a battery metals focused entity that has taken over Metals X Limited’s Central Musgrave Project having Nickel and Cobalt prospects
• Nico Resources Limited raised around AU$12 million from its’ IPO, backed by investment from Metals X Limited, Blue Ocean Equities, Mining Corporate and others.
• Even ASX listed mineral explorer Blackstone Minerals Limited (ASX:BSX) has made a strategic investment in Nico's nickel
• Wingellina however is NC1’s largest undeveloped nickel deposits.
• The funds raised by NC1 in its oversubscribed are to be used primarily for advancing its’ Wingellina project to development stage and for other exploration programs.
• Nico’s board also believes that the demand for both Nickel and Cobalt will be increasing as it is associated with eco-friendly battery sector.
• Nico Resources claims to be is well placed to partner as a supplier with global EV sector end users.

Bottom line

The peaked interest from ASX investors on NC1’s first trade day seems to be backed by the demand for its business’ produce- Nickel and Cobalt. However, the stock performance on first day cannot determine the pace of the share in future.

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