Liontown (ASX:LTR) share price lifts ahead of Minerals 260's IPO

All eyes will be on Liontown and its spin-off, Minerals 260, tomorrow morning.

| More on:
a male lion closes its eyes and opens its mouth wide while a smaller cub looks inside its mouth in a loving manner.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Liontown Resources Limited (ASX: LTR) share price is surging higher today amid the market's excitement for its spin-off's Initial Public Offering (IPO).

The spin-off will be named Minerals 260 and will trade under the ticker MI6 from 10am Tuesday morning.

Minerals 260 holds the Moora Project and the Koojan Joint Venture Project, both located in Western Australia. It also owns the Dingo Rocks tenement and has tenement applications at Yalwest.

At the time of writing, the Liontown share price is $1.47, 3.51% higher than its previous close.

Let's take a closer look at Minerals 260's upcoming ASX debut.

Liontown share price up ahead of Minerals 260's IPO

The Liontown share price is gaining amid anticipation of its spin-off's float.

The company announced news of Minerals 260's heavily oversubscribed $30 million IPO last week.

Under Minerals 260's prospectus, shares in the company were offered for 50 cents apiece.

Liontown also offered 160 million Minerals 260 shares as part of a pro-rata offer to its own shareholders. As a result, each Liontown shareholder received 1 Minerals 260 share for every 11.94 Liontown shares they held as of 28 September.

On Mineral 260's fast approaching float, Liontown's managing director Tony Ottaviano commented:

It's tremendous to see the successful conclusion of the Minerals 260 demerger and the launch of an exciting new, well-funded exploration company on the ASX… I look forward to monitoring the progress that Minerals 260 makes, while Liontown continues to advance towards its objective of becoming a world-class battery materials producer.

Minerals 260's projects include the Moora Project which houses gold, platinum group elements, nickel, and copper. The company also has an option to earn a 51% stake in the Koojan Joint Venture Project.

The newly formed company will be led by Liontown's former technical director David Richards.

All eyes will be on the Minerals 260 share price, and that of Liontown, when the ASX opens tomorrow morning.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner standing at quarry looking upset
Resources Shares

This ASX All Ords mining stock sinks 13% after a rocky quarter

Investors continue unloading shares in the precious metals company.

Read more »

Miner looking at a tablet.
Resources Shares

Will ASIC make a dog's breakfast of Mineral Resources shares?

ASIC has now stuck the probe in to investigate.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Resources Shares

Should you buy Rio Tinto stock or Woodside stock today?

Which of these giants is best? Here's what Goldman thinks.

Read more »

Miner looking at a tablet.
Resources Shares

What does Trump's win mean for iron ore shares like Fortescue?

The controversy on tariffs has already started.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Own BHP shares? Directors of the mining giant have been busy with stock transactions

It can be worrying when directors sell.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Resources Shares

Are Lynas shares a buy, sell, or hold for 2025?

Much depends on the outlook for rare earths.

Read more »

a tired and sad looking bulldog sits at an office desk with a pen an paper on it and a cup of coffee with his head resting on the desk as he gives a mournful look to the camera.
Resources Shares

After crashing 50%, could this ASX All Ords stock rebound?

Such low starting valuations could help.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why did the Fortescue share price fall 7% in October?

Let's review what happened with the ASX 200 mining giant in October.

Read more »