Latrobe Magnesium Limited (ASX: LMG) has secured firm commitments to raise A$10 million through an equity raising initiative. The company will undertake an institutional placement to raise A$6.0 million from new and existing institutional and professional investors, alongside a fully underwritten, non-renounceable entitlement offer to raise approximately A$4.0 million.
Latrobe Magnesium, which is developing a magnesium metal Demonstration Plant in Victoria’s Latrobe Valley using its world-first patented extraction process, will use the funds to complete its 500-tonne-per-annum magnesium plant. Additionally, the capital will support the procurement, installation, and commissioning of minor piping and electrical bulk materials, cover operating costs for two months of steady-state magnesium production, and provide working capital, including covering the costs of the offer.
The Placement will involve the issue of approximately 261 million new shares at $0.023 per share, representing a 14.8% discount to the last traded price. The Entitlement Offer, underwritten by Shaw and Partners, will be offered at the same price and will constitute the issue of approximately 175 million new shares. Eligible shareholders can bid for up to 100% in excess of their entitlement, with the offer opening on 21 October 2025.
According to Latrobe Magnesium CEO David Paterson, the company is pleased with the strong support for the equity raising, driven by increased demand for magnesium. The equity raising will help fund the magnesium section of the Demonstration Plant, demonstrating the commerciality of its full flowsheet, and will advance plans for the 10,000-tonne-per-annum Commercial Plant, with a Bankable Feasibility Study to commence once further funding is secured.
