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.
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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.
