Latrobe Magnesium Secures A$18M In Transformational Equity Raise

Latrobe Magnesium Ltd (ASX: LMG) has received firm commitments to raise A$12 million from institutional and professional investors via a placement of shares at $0.045 each.

The company will also raise an additional A$6 million through an underwritten entitlement offer to existing shareholders.

The entitlement offer will be at the same price as the placement and is fully underwritten by Ord Minnett.

Magnesium from brown coal fly ash

LMG is developing a magnesium production plant in Victoria’s Latrobe Valley using its world-first patented extraction process.

The company intends to extract and sell magnesium metal and cementitious material from industrial fly ash, a waste resource from brown coal power generation.

LMG has completed a feasibility study validating its combined hydrometallurgical / thermal reduction process that extracts the metal.

The demonstration plant has produced magnesium this month with the full plant being commissioned in the third quarter of calendar year 2024.

Use of funds

Funds raised will be used for the final structural works and commissioning of the demonstration plant.

Additionally, LMG will complete final engineering ahead of steady-state 1ktpa magnesium metal production.

LMG will also use the funds to support its R&D alongside CSIRO on vertical retorts to optimise the thermal reduction process.

Final Investment Decision by year-end

LMG Managing Director David Paterson said: “This equity raise will help fund our demonstration plant to produce a magnesium metal and saleable by-products, demonstrating the commerciality of our full flowsheet.

 “In conjunction with the final engineering of the Demonstration Plant to produce magnesium metal ingots, we are advancing plans surrounding the 10,000tpa Commercial Plant, with a Bankable Feasibility Study to commence shortly which will inform the Final Investment Decision planned for calendar year’s end.”

  

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