Western Magnesium Corporation has announced a non-brokered private placement for gross proceeds of up to US1.5 million.
The offering is for up to 2,727,273 units at a price of US$0.55 per unit, with each unit to consist of one common share and one common share purchase warrant in the capital of Western Magnesium. Each warrant will be exercisable into one common share for a period of twelve (12) months at a price of USD 0.75.
Proceeds of the private placement will be used for working capital and to complete our commercialized pilot plant.
READ: Western Magnesium says to ship Distributed Control System to its pilot plant
Completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the final 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.
The securities have not been registered with the SEC and are also subject to a statutory one-year hold period in compliance with Regulation S of the Securities Act of 1933 as amended. The Regulation S hold period supersedes the TSX Venture Exchange hold period.
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 Unlike outdated and costly production processes, The comopany looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and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