Latrobe Magnesium raises $18 million for Demonstration Plant and future expansion

May 30, 2024 at 14:40 PM EDT

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Latrobe Magnesium Ltd (ASX: LMG) chief operating officer Ronan Gillen sits down with Jonathan Jackson in the Proactive studio to discuss the firm commitments received to raise A$12 million from new and existing institutional and professional investors via an institutional placement, alongside a proposed fully underwritten, non-renounceable entitlement offer to raise A$6 million. Funds will be utilised for the final structural works and commissioning of the Demonstration Plant, final engineering for steady-state production of 1,000 tonnes per annum magnesium metal and ongoing R&D in partnership with CSIRO. The offer received strong support from LMG’s directors and management, who subscribed for A$650,000 of shares. Gillen expressed satisfaction with the support, noting the demand from both domestic and international markets. He highlighted the significance of LMG being the first to produce magnesium from brown coal fly ash and the positive macroeconomic outlook for magnesium. The raised funds will support the Demonstration Plant in producing magnesium metal and saleable by-products, showcasing the commercial viability of their full flowsheet. LMG is also advancing plans for a 10,000 tonnes per annum Commercial Plant, with a bankable feasibility study set to begin shortly and inform a Final Investment Decision by the end of the year. The placement offers an opportunity to diversify the shareholder register ahead of significant company growth.