It's a good day to be invested in 5E Advanced Materials Inc (ASX: 5EA). The boron and lithium explorer's share price is leaping 9.78% on news it will soon join the S&P/ASX 300 Index (ASX: XKO).
The 5E Advanced Materials share price is trading at $2.47 on the back of the news, after earlier touching 14.2% higher than its previous close at $2.57.
For comparison, the ASX 300 is lifting 0.23% right now.
Let's take a closer look at the news driving the mineral explorer's stock higher on Monday.
5E Advanced Materials share price surges on ASX 300 inclusion
The 5E Advanced Materials share price is soaring higher after it was revealed the company will soon be recognised as one of the ASX's 300 largest companies.
Its inclusion means funds tracking the ASX 300 will have to snap up the stock before the market opens on 19 September to continue mirroring the index.
That will likely increase demand for 5E Advanced Materials' shares and, therefore, their value.
The company's president and CEO, Henri Tausch, commented on other benefits the change could bring, saying:
This inclusion places us in the company of the largest 300 securities on the ASX, which will increase our exposure to investors and potentially, liquidity in our stock with incremental buy demand.
News the mineral explorer will be added to the index was released after market close on Friday.
It's one of many mining shares entering the ASX 300 this month. Others include Argosy Minerals Limited (ASX: AGY), Arafura Resources Limited (ASX: ARU), and Grange Resources Limited (ASX: GRR).
It's been a rocky year so far for the 5E Advanced Materials share price. It floated on the ASX in March and hit the NASDAQ later that same month. It has slumped 13% since its first close on the ASX.
