The Kuniko Ltd (ASX: KNI) share price was a 5-bagger on open, surging to an intraday high of $1.05 within its first three minutes on the ASX.
About the Kuniko share price
Kuniko is a spin-off of Vulcan Energy Resources Ltd (ASX: VUL) and its non-core Norwegian battery metal assets.
The spin-off enables Vulcan to fully focus on the development of its core Zero Carbon Lithium project while Kuniko will focus on the development of copper, nickel and cobalt projects in Scandinavia.
Kuniko's initial public offering successfully raised ~7.8 million at an offer price of just 20 cents per share.
At the time of writing, the Kuniko share price is trading at 94 cents, or 370% higher than its offer price.
Kuniko's projects
Kuniko will be focused on exploration programs to determine the economic viability of its projects, with a strict mandate to maintain a net zero carbon footprint throughout exploration, development and production.
The focus will be on the company's 262km2 Nickel-Cobalt-Copper (Ni-Cu-Co) licence portfolio which includes:
- South-west Norway tenements: Ni-Cu-Co projects in the historically important Feøy and Romsås mining districts located in south-western Norway
- South-central Norway cobalt tenements: Copper-Cobalt-Gold project, part of the historically important Skuterud mining district of central-southern Norway, previously the largest cobalt mining area in the world
- South-central Norway copper tenements: Undal Cobalt-Zinc-Copper project and Vangrøfta Copper-Cobalt-Gold projects located in the Trondheim region of central Norway
The company has budgeted $4.15 million worth of exploration activities for the first two financial years. This could mean a number of catalysts for the Kuniko share price as geophysics, sampling and drilling results are released.
What's the hype behind the Kuniko share price?
Kuniko was created by the same team as Vulcan Energy, an emerging ASX lithium producer whose share price surged from 60 cents to $14 in the past 12 months.
Moving forward, the company has a highly credible and experienced team to progress exploration. This includes its executive chairman, Gavin Rezos, who was the non-executive chairman of Vulcan Energy.
Kuniko's prospectus also highlights that "in recent years there has been an increasing demand for battery metals including copper, nickel and cobalt, specifically in the EU as a result of change in policy by EU governments seeking to dramatically reduce carbon emissions".
