Western Magnesium Corporation (CVE:WMG) said a US$1.5 million investment for the continuing build-out of its pilot plant signals a vote of confidence in the progress it is making as it prepares for metal production.
The company, which plans to produce low-cost, green magnesium metal, raised the funds through the non-brokered private placement of a 12% unsecured convertible debenture which matures in December 2022. The debenture is convertible into common stock prior to the maturity date at a price of US$0.10. The conversion shares also include warrants that are exercisable until June 2026.
Western Magnesium recently brought forward production timelines after completing the building of the key reactor at the pilot plant.
READ: Western Magnesium speeds up its production timelines with completion of reactor
“This investment into our company signals the market’s confidence by recognizing what has been achieved to date and the stage of development we are at regarding plant operations and metal production,” Western Magnesium executive president and CEO Sam Ataya said in a statement.
Western Magnesium's research has led to it developing a proprietary technology, which can generate magnesium metal with low labor, high automation, low energy and zero toxic by-products and waste.
The company says its continuous silicothermic process means the company can be price competitive, scale up easily, and be environmentally friendly.
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