Latrobe Magnesium (ASX:LMG) has secured a site for its 40,000 tonne per annum magnesium plant in the Latrobe Valley in eastern Victoria.
Documentation with the vendor, the Di Fabrizio family, for securing the site at 320 Tramway Road Morwell, has been finalised.
The site contains over 14,000 square metres of office and factory buildings that comprise 13% of the total 10.95 hectares of land.
Existing buildings are sufficient to accommodate LMG’s initial 5,000 tonne per annum magnesium plant whilst allowing room for expansion, situated close to existing gas and water pipelines and local infrastructure.
Latrobe has secured an option for twelve months to enter into a three year lease over the site at fixed rentals and a right to buy the property at a fixed price during this period.
The twelve month option period should allow LMG to complete a bankable feasibility study for its magnesium project.
Latrobe intends to produce magnesium using its world-first patented extraction process, creating magnesium metal and cement products from industrial fly ash, which is currently a waste stream from brown coal power generation.
Negotiations with local suppliers of fly ash and end users of magnesium are underway, with production expected to commence in late 2015.
Latrobe is capitalised at around $4 million.
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