Latrobe Magnesium Limited (LMG) has announced that it raised $4.2 million through a placement to sophisticated, professional and institutional investors, saying the funds will be used for its magnesium demonstration plant in the Latrobe Valley.
According to the company, the funds were raised through the issuance of 70 million shares at 6 cents per share, which were issued within LMG’s existing capacity under the ASX Listing Rule 7.1.
LMG’s current budget estimate for the 1,000 tpa demonstration plant is $41.7 million, and as of 23 May, the company has spent over $18 million on the plant.
It added that the surplus funds from the $41.7 million will be used to carry out the GHD work necessary to determine a Joint Ore Reserves Committee reserve on the amount of fly ash that can be safely removed from the Yallourn landfill.
The results of the work will determine the annual production size of the expanded plant, as well as help the company in the planning and approval processes for the expanded plant.
The company believes that Yallourn will produce sufficient fly ash until its closure in 2028 to operate a 10,000 tpa magnesium plant for 20 years.
Most of the equipment is expected to be on-site by 30 June, with dry commissioning activities already completed.
Wet commissioning, load commissioning and full commissioning activities are expected to be completed by the third quarter.
