Latrobe Magnesium Limited has successfully closed an oversubscribed Share Purchase Plan, raising $836,800 to fund its Demonstration Plant operations in Victoria. This capital injection supports the company’s pioneering sustainable magnesium extraction efforts.
- Share Purchase Plan raised $836,800, oversubscribed beyond target
- 76 million shares issued at $0.011 each
- Funds allocated to working capital for magnesium oxide production
- Demonstration Plant commissioning planned for 2025
- Long-term magnesium metal contracts targeted for US distributors
Oversubscribed Share Purchase Plan Signals Strong Investor Support
Latrobe Magnesium Limited (ASX: LMG) has announced the successful closure of its Share Purchase Plan (SPP), which raised $836,800, exceeding the initial target. The company will issue 76,072,670 new shares at $0.011 each, with the board accepting the oversubscription in full. This capital raise reflects robust shareholder confidence in Latrobe Magnesium’s innovative approach to magnesium production.
Funding the Next Phase of Sustainable Magnesium Production
The funds raised will be directed towards working capital needs associated with the production of magnesium oxide and the operation of Latrobe Magnesium’s Demonstration Plant located in Victoria’s Latrobe Valley. This plant utilises a patented hydrometallurgical and thermal reduction process to extract magnesium metal from industrial ash, a waste product of brown coal power generation, highlighting the company’s commitment to sustainable and circular economy principles.
Progressing Towards Commercial Scale and International Expansion
With commissioning of the Demonstration Plant scheduled for 2025, Latrobe Magnesium is positioning itself at the forefront of low-carbon magnesium metal production. The company plans to produce 10,000 tonnes per annum of refined magnesium metal, targeting long-term contracts with US-based distributors. Beyond this, Latrobe Magnesium is advancing plans for a larger International ‘Mega’ Plant in Sarawak, Malaysia, aiming to scale production to 100,000 tonnes annually using ferronickel slag feedstock.
Environmental and Industrial Significance
Magnesium’s exceptional strength-to-weight ratio makes it increasingly valuable across automotive, aerospace, medical, and electronics sectors. Latrobe Magnesium’s process not only recycles industrial waste but also reduces landfill and carbon emissions, aligning with ESG best practices. This dual focus on innovation and sustainability could position the company as a key player in the evolving materials market.
Looking Ahead
The new shares are scheduled for issue on 12 May 2025, marking a pivotal step in Latrobe Magnesium’s development journey. As the Demonstration Plant moves towards full commissioning and commercial production, investor attention will likely intensify on operational milestones and contract finalisations that will validate the company’s growth trajectory.
Bottom Line?
Latrobe Magnesium’s oversubscribed capital raise underpins its push towards sustainable magnesium production, but execution on commissioning and sales will be crucial next steps.
Questions in the middle?
- When will the Demonstration Plant reach full commercial production capacity?
- What are the terms and durations of the long-term contracts with US distributors?
- How will the company finance and timeline the larger-scale International Mega Plant in Malaysia?