Western Magnesium Corporation (CVE:WMG) has launched a non-brokered private placement to raise gross proceeds of up to C$3 million.
The company said the proceeds of the private placement will be used for working capital and to complete its commercialized pilot plant.
READ: Western Magnesium launches Business Development and Government Affairs division to lead discussions with public and private sector
Each unit in the offering will consist of one common share in the capital of the company and one common share purchase warrant which will be exercisable into one common share for a period of one year at a price of $0.19 per share.
Completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The securities issued will be subject to a statutory hold period in Canada for a period of four months and one day from the closing date.
Western Magnesium's goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and lightweight.
Unlike outdated and costly production processes, the company looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
Contact the author at jon.hopkins@proactiveinvestors.com