Latin Resources Ltd (ASX: LRS) shares are having a stunning session.
In afternoon trade, the lithium developer's shares are up almost 18% to 16.5 cents.
Though, this doesn't change much on a six-month basis, with the company's shares still down by over 50% since this time in August.
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Why are Latin Resources shares surging?
Investors have been buying Latin Resources and other ASX lithium shares today following improving sentiment in the industry.
This appears to have been driven by a strong night of trade on global markets for lithium stocks. This saw Ganfeng Lithium jump 8%, Tianqi Lithium leap 7%, Albemarle rise 4%, and Lithium Americas Corp climb 7%.
In addition, there has been some news related to Latin Resources that could be catching the eye of investors.
The AFR is reporting that the terms are now out for the company's spin-off of its exploration projects under the name of Maverick Minerals.
Maverick Minerals is reportedly seeking to raise $5 million at 20 cents per share. This will give it a market capitalisation of $8.6 million at listing.
Latin Resources will still hold onto 16% of the lithium explorer, with its existing shareholders given first dibs on up to 50% of Maverick stock under its IPO book build.
Which projects does it own?
Following the completion of its IPO, Maverick Minerals will own projects in Western Australia, New South Wales, Victoria, and Ontario, Canada.
Its Western Australian projects include the Laverton Downs Project, the Shelby Project, the Kathleen Project, and the Albert Project.
Whereas its New South Wales and Victoria projects include the Lachlan Fold Belt Project. And finally, its Canadian Projects include the Luka Lithium Project, the Marion Project, the Sollas Lake Lithium Project, and the Muriel Lithium Project.
Maverick Minerals shares are scheduled to commence trade on the ASX boards on 6 March.
