Latrobe Magnesium clears funding hurdle for first metal target

Underwriters absorb most of the entitlement offer

Latrobe Magnesium Limited (ASX:LMG) has completed its fully underwritten non-renounceable entitlement offer, raising approximately $3.4 million before costs despite modest take-up from eligible shareholders. Investors subscribed for 20,335,590 new shares worth $305,034.35, leaving 207,324,271 shares, or $3,109,880.31, to be taken up by sub-underwriting clients of Shaw and Partners.

The result completes the funding exercise that had been extended to 26 October amid difficult equity market conditions, following the extended entitlement offer marker. The shortfall does not reduce the gross amount targeted under the offer because the underwriting arrangements require Shaw and Partners to subscribe for the remaining shares.

Funding now tied to first magnesium production

Chief executive Robert Stein said the completed raising means LMG is fully funded through to first magnesium crown production at its Latrobe Valley Demonstration Plant, targeted by the end of 2026. Stein has also personally invested $300,000 across the company’s placement and entitlement offer.

That funding statement is closely linked to execution rather than a completed production milestone. LMG reports the Demonstration Plant is 95% installed and 35% commissioned, with first magnesium metal still dependent on the remaining construction, commissioning and production work. The company’s earlier Demonstration Plant progress update reported the same installation and commissioning levels as first metal approached.

South Carolina project remains a second funding priority

Alongside the Victorian commissioning program, LMG says it has secured exclusivity over a strategic site in South Carolina and is progressing port, rail, engineering and financing work for its US Growth Project. It is also advancing a refinancing strategy, including lodging its FY2026 research and development tax incentive claim and progressing land sales.

The company has not provided a new funding breakdown between the Demonstration Plant, refinancing work and the South Carolina project in this announcement. The immediate test is therefore whether the completed raise supports the targeted end-2026 production date while LMG continues to develop a larger overseas project.

New shares due to trade next week

LMG expects to issue shares under accepted entitlements on 2 November, with trading anticipated to begin on the ASX on 3 November. Shares taken up through the shortfall will be allocated to sub-underwriters under the terms of the prospectus, increasing the number of securities held outside the existing shareholder base.