Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) has extended the closing date for its fully underwritten $6 million entitlement offer, which is part of a $18 million equity raise to help fund its demonstration plant in the Latrobe Valley of Victoria, Australia.
The decision to extend the entitlement offer closing date was made to provide eligible shareholders sufficient time to consider their financial position after the end of the financial year on June 30. The closing date has been extended to 5.00pm AEST on Wednesday, July 10, 2024.
The A$6 million entitlement offer follows commitments from several new and existing institutional and professional investors to raise $12 million through an institutional placement.
Pleased with the strong support
Commenting on the placement, Latrobe Magnesium managing director David Paterson said: “We are very pleased with the strong support for this equity raising, evidenced by demand from both the domestic and international markets.
“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."
Funds will be used for the final structural works and commissioning of the company’s demonstration plant in the Latrobe Valley of Victoria, Australia, using its patented magnesium extraction process.
The company intends to produce magnesium metal and cementitious material from industrial fly ash, which is currently a waste resource from Yallourn brown coal power generation.
LMG has also informed shareholders that it has extended the date for conduct of the general meeting from Wednesday July 31, to Wednesday August 7, 2024. The general meeting documentation will be sent to shareholders in early July.