Western Magnesium Corporation announced it has closed its non-brokered private placement of 3,853,737 units for gross proceeds of C$2,119,555.
Proceeds from the private placement will be used for working capital and to complete a commercialized pilot plant, according to a statement.
Under the term sheet, each unit consists of one share priced at C$0.55 and one warrant priced at $0.65 for an 18-month term.
READ: Western Magnesium moves closer to testing phase as commercialized pilot plant undergoes final build out
The warrants are subject to a “Force Majeure” clause in that at any time following the date of warrant issue, the company has the right to require its holder to exercise the warrants, so long as they give 30 days notice and the closing trading price of the company’s shares on the principal trading market exceeds C$1 for at least 10 consecutive trading days.
The warrants will terminate on the date that is 30 days from the date of the call notice if the holder has not exercised the warrants in accordance with the terms.
Western Magnesium is focused on becoming the world's leading low-cost producer of eco-friendly and high-quality magnesium - a strategic metal.
The company's research and development efforts have come up with a proprietary technology, which can generate magnesium metal with low labour, high automation and low energy with zero toxic by-products and waste.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas