Liontown spin-out Metals 260 shines on debut
Liontown Resources gold spin-out Minerals 260 has enjoyed a strong debut on the ASX, opening at close to a 50 per cent premium to its 50¢ issue price (reports The West Australian).
14th October 2021
Minerals 260, which houses Liontown’s precious and base metals assets with a focus on the prospective Moora project and contiguous Koojan farm-in joint venture project with Lachlan Star, opened at 74.5¢, but pared its initial gains to be trading at 62.5¢ at 10.30am.
The listing follows a $30 million initial public offering, in which Liontown shareholders were given priority on top of the shares they received as part of an in specie distribution.
Liontown’s technical director and former chief executive David Richards will lead the new entity focusing on the company’s Angepena prospect at Moora, where drilling earlier this year intersected 43m at 1.8g/t gold.
“Drilling is planned to follow up on the numerous targets that were previously defined within the Moora and Koojan project areas,” he said.
“We are looking forward to hitting the ground running with a systematic exploration program that we believe will unlock the full potential of our key projects and put Minerals 260 on a pathway to growth and success.”
The demerger will allow Liontown to focus on the development of its Kathleen Valley lithium project near Leinster, which has lifted the company’s market capitalisation to nearly $3 billion.
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