Latrobe Magnesium to raise $18m to progress magnesium production

Latrobe Magnesium has received firm commitments to raise $12.0 million from new and existing institutional and professional investors via an institutional placement and has announced plans for an entitlement offer to shareholders to raise another $6 million.

The company, which recently produced what it called the world’s first environmentally sustainable magnesium oxide (MgO) from fly ash waste from brown coal power generation, will use the cash to for the final structural works and commissioning of its Demonstration Plant in Victoria’s Latrobe Valley.

The company will also progress final engineering ahead of steady-state 1ktpa magnesium metal production and R&D currently being undertaken alongside CSIRO.

Latrobe Magnesium is commercialising its combined hydrometallurgical/thermal reduction process to produce the lightweight metal, which also produces cementitious material as a by product.

Latrobe Magnesium’s directors have supported the capital raise, priced at a 19.6 percent discount to the last traded price, having subscribed for $650,000 of shares in the placement.

Managing Director David Paterson said: “It is pleasing to see the market recognise the importance of LMG as the world’s first producer of magnesium from brown coal fly ash. The support from both new and existing investors is a testament to our team, patented process and the positive macroeconomic outlook for magnesium.

“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.”

With completion targeted the first quarter of calendar year 2026, the full 10,000tpa production of refined magnesium from the commercial plant is under long-term contracts to USA customers.

Currently, Australia imports 100 percent of the 8,000 tonnes annually consumed.

Paterson said: “The next 12 months promise to be an exciting time for us and we are very appreciative of the continued support of our existing shareholder base.”

Further reading:
Latrobe Magnesium produces first oxides from fly ash

Image: Latrobe Magnesium