James Bay Minerals Limited (ASX: JBY) shares are rising again on Wednesday.
At the time of writing, the lithium explorer's shares are up 50% to a new high of 45 cents.
This means the James Bay Minerals share price is now up over 100% since completing its IPO on Tuesday.
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Why are James Bay Minerals shares on fire?
Investors have been fighting to get hold of the company's shares since they hit the ASX boards yesterday following a $6 million IPO at 20 cents per new share.
The reason for this is the potential of its properties in the heart of the La Grande Greenstone Belt in Canada. Management highlights that its ~224km squared portfolio is close to some high-quality lithium projects.
For example, the company's Aero, Aqua, and Joule properties are located directly along-trend from the Corvette lithium discovery. This is where Patriot Battery Metals Inc (ASX: PMT) recently reported a globally significant maiden inferred mineral resource estimate of 109.2Mt at 1.42% Li2O.
Whereas the company's Troilus property is located just 5km from the Moblan lithium deposit owned by Sayona Mining Ltd (ASX: SYA). The deposit has measured, indicated and inferred resources of 51.4 million tonnes @ 1.31% Li2O.
So, with a market capitalisation of approximately $25 million, there are some potentially big returns ahead for investors if the company can find similar lithium deposits within its properties.
James Bay Minerals' executive director, Andrew Dornan, appears optimistic that the company could have success with its exploration activities. He said:
This strong interest from investors [for the IPO] reflects the exceptional outlook for the lithium market and the outstanding credentials of the James Bay region as a lithium exploration hotspot.
We are starting our life as a Canadian-focused lithium explorer against the backdrop of unprecedented activity within the global lithium sector. Recent major news emanating from the James Bay district vindicates our strategy to focus on the James Bay area as the next major global frontier for hard rock lithium discoveries of scale.
