Latrobe Magnesium Secures $6.3 Million to Kickstart Operations

Highlights:

• $6.3 million funding secured via placement, SPP, and debt facility to support plant operations and debt obligations.
• Land sale expected to raise up to $5 million, aiding future project development and working capital.
• Demonstration Plant to restart by May 2025, enabling steady MgO production and further progress on Stage 2 commercialisation.

Funding Strategy Backed by Placement and SPP

Latrobe Magnesium Limited (ASX: LMG) has successfully raised $6.3 million to support the restart of its 1,000 tonnes-per-annum (tpa) Demonstration Plant operations and other financial obligations. At the time of writing, the funding package includes a $2.75 million institutional placement, a fully underwritten Share Purchase Plan (SPP) of $750,000, and access to an additional $2.8 million in debt funding.

Company directors have demonstrated strong confidence by subscribing for $550,000 in the placement. The new shares, priced at $0.011 each, represent a 15.4% discount from the last traded price of $0.013.

Debt Facility and Land Sale to Bolster Liquidity

In addition to the equity raise, Latrobe Magnesium has secured debt support from RnD Funding, which has released $550,000 in locked funds and extended a further $2.3 million facility at a reduced interest rate of 10%. The total debt is projected to reach $7.4 million but is expected to be cleared with the company’s 2025 tax rebate.

LMG is also working with Jones Lang LaSalle to sell 4.3 hectares of surplus land at its Tramway Road site. The sale, anticipated by 30 June 2025, is projected to generate up to $5 million for working capital and development studies.

Demonstration Plant Restart on Track

Operations at the Demonstration Plant are targeted to resume by late May 2025, subject to labour finalisation, reagent restocking, and approval from the Environmental Protection Authority. The plant aims to achieve steady-state Magnesium Oxide (MgO) production for sale to Australian clients and to support Stage 2 permitting efforts.

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