Explorer Accelerate didn’t get out of first gear in its ASX debut
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Cobalt and gold play Accelerate Resources didn’t live up to its name in its ASX debut on Wednesday.
The explorer joined the Australian bourse on Wednesday afternoon after selling 25 million shares at 20c apiece to raise $5 million.
The stock never got out of first gear in its first day of trade — listing at 21c, touching 22c and closing the day down 2.5 per cent at 19.5c.
More than 10 per cent of the shares — about 3.1 million — changed hands.
The cash will be used to fund exploration at Acelerate’s Mount Read cobalt project in Tasmania as well as gold projects in Western Australia.
Accelerate’s main focus is its cobalt project, where it will begin drilling in March to define a resource.
The company’s decision to list now was driven by rising demand for battery related minerals.
Demand for electric car batteries is expected to drive demand for cobalt eight-fold by 2025, according to Morgan Stanley.