Latrobe Magnesium secures $6.3M to restart plant and advance magnesium production

Latrobe Magnesium (ASX:LMG) has secured $6.3 million in funding to support the restart of its demonstration plant.

The funding includes $2.8 million raised through an institutional placement and $0.75 million through a fully underwritten share purchase plan, totalling $3.5 million.

The company’s directors have committed $550,000 to the placement, demonstrating strong internal support.

The company plans to restart its demonstration plant by late May, to produce magnesium oxide at a steady state.

In addition to the capital raised Latrobe Magnesium has secured approval to draw down $2.8 million in debt financing, with interest rates reduced to 10%.

Latrobe Magnesium is also advancing the sale of surplus land at its Tramway Road site, expected to raise up to $5 million by June.

CEO David Paterson expressed confidence in the funding, emphasising the importance of these investments in demonstrating sustainable MgO production and advancing magnesium metal development.

Latrobe Magnesium has secured a further $2.3 million in debt financing from RnD Funding, with reduced interest rates.

The sale of surplus land will help raise capital for future projects, including the development of a magnesium JORC resource and the advancement of Stage 2 operations.

At the time of reporting, Latrobe Magnesium's share price was $0.013.