Western Magnesium Corporation (CVE:WMG) told investors it has closed the second and final tranche of a previously announced private placing, raising C$3 million gross.
The company aims to produce low-cost, green magnesium metal and it said the net proceeds will be used for working capital and to complete its commercialized pilot plant in Canada.
READ: Western Magnesium raises new funds with a convertible debenture
Each unit in the offering was priced at C$0.13 and consists of one company share and one share purchase warrant which will be exercisable into one share for one year at C$0.19 each.
The first tranche closed on 5,223,420 units for gross proceeds of C$679,044, while the second closed on 17,853,506 units for gross proceeds of C$$2,320,956, thus the total proceeds were C$3 million.
On June 2, 2021, Western Magnesium announced a milestone in its plans, revealing it had now completed building the key reactor at the pilot plant. This has brought forward the company's previous timeline, which was that it aimed to produce the metal from the pilot plant in Canada by the end of 2021.
Now, production is set for the purposes of testing, certification, and distribution within the next 90 days, the company said then.
"This exciting change in production timeline, will coincide with the opening of our Washington, DC head office, which will better facilitate discussions with end user clients in various industries, to start the process of our metal certification, which will culminate in purchase order agreements," the firm's CEO Sam Ataya noted.
Western Magnesium also recently announced the closing of a US$1.5 million investment via a non-brokered private placement of a 12% unsecured convertible debenture which matures in December 2022, to be used for the continuing build-out of the pilot plant.
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'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.
Magnesium has a range of uses and is a composite metal, such that it is made to use aluminum and titanium. It is essential in a range of industries, including automotive, aviation, energy and military. It is a third lighter than aluminum, 60% lighter than titanium and 75% lighter than steel
Contact the author at giles@proactiveinvestors.com