The Minerals 260 Limited (ASX: MI6) share price has hit the ground running after making its ASX debut at 1:00 pm on Tuesday.
The company’s oversubscribed initial public offering (IPO) successfully raised $30 million at a listing price of 50 cents per share.
The Minerals 260 share price opened at 75 cents, or 50% higher, and the company’s shares are currently fetching 61 cents each.
You can read more about Minerals 260’s projects here.
What’s driving the Minerals 260 share price?
There’s arguably a lot of hype behind the Minerals 260 share price.
The new company is a spin-off of Liontown Resources Limited (ASX: LTR)’s non-lithium assets.
Liontown is an emerging lithium player with a world-class lithium deposit in Western Australia. Its share price has ballooned 250% year-to-date and 440% in the last 12-months on the back of the bullish lithium sector and surging lithium prices.
Minerals 260’s most advanced exploration project, the Moora Project, is in the same geological terrain as the Julimar discovery by Chalice Mining Ltd (ASX: CHN), located 95 km to the south.
Chalice has been one of the top performing ASX shares, surging some 1,000% since its Julimar discovery in April 2020.
Minerals 260 described its IPO as “oversubscribed” meaning it may have received more than the $30 million it was asking for.
This means some investors might have had their IPO allocations scaled back. If they wanted more shares, they’d have to buy Minerals 260 on-market.
What’s so special about Minerals 260?
Minerals 260 owns four prospective gold, nickel, copper and platinum-group elements (PGE) projects across Western Australia.
The Koojan, Dingo Rocks and Yalwest projects are early-stage exploration projects where the area is relatively underexplored.
The Moora Project is arguably its most exciting prospect at this time, given its proximity to Chalice’s “globally significant” Julimar.
The resources the company is looking for play into the concept of “green metal” used for technologies to decarbonise the global economy and address climate change.
Nickel is a key battery material used in electric vehicles while copper is used extensively in the green energy industry. Platinum also has applications in green hydrogen production and fuel cells.