Latrobe Magnesium Ltd has raised $1.65 million through a successful share purchase plan (SPP), bolstering the company’s efforts to bring its unique magnesium demonstration plant into production.
The oversubscribed SPP, which closed on May 2, raised $836,800 through the issue of 76,072,670 shares at $0.011 per share, with the new shares to be issued on May 12. It follows the company’s $2.75 million institutional placement completed in April and is part of a broader $6.3 million funding package.
World-first extraction process
The funds are earmarked for the commissioning and ramp-up of operations at the 1,000-tonnes-per-annum (tpa) Stage 1 Demonstration Plant in Victoria’s Latrobe Valley. Production would rely on LMG’s world-first process for extracting magnesium metal and cementitious material from industrial ash, which is currently a waste resource.
The Demonstration Plant aims to process almost 100% of fly ash into magnesium metal, silica, calcium carbonate and other valuable products. The low-carbon dioxide process can address potentially hazardous waste stockpiles while creating downstream environmental benefits, according to LMG.
The plant is in the final stages of construction, with commissioning already underway and production expected in the coming months. Once operational, the Demonstration Plant will serve as a cornerstone for LMG’s commercialisation strategy, and the company anticipates producing its first saleable magnesium in mid-2025.
Chief executive officer David Paterson said the board accepted the oversubscription in full, noting that the SPP’s completion marked another important milestone for the company’s vision.
“The board would like to thank the shareholders for their continued support towards developing sustainable magnesium production,” Paterson said.
Strategically important
Magnesium is a critical mineral used in a range of industries, from automotive manufacturing to aerospace and defence. It is also on Australia’s Critical Minerals List due to it strategic importance and supply chain vulnerability.
LMG’s process is designed to be more environmentally friendly than traditional magnesium production by using industrial waste and reducing carbon intensity. The project also aligns with federal and state government priorities to boost domestic capacity for critical minerals processing.
If successful, the Demonstration Plant will serve as a blueprint for a planned 10,000-tpa commercial facility at the same site, in line with LMG’s aims of proving the commercial feasibility of the proprietary extraction technology.