Latrobe Magnesium Limited (ASX:LMG)’s David Paterson discusses with Proactive’s Andrew Scott the drawdown of $10 million to go towards the construction of a demonstration plant in Victoria’s Latrobe Valley. The money is part of the company’s $23 million project finance facility and will enable Latrobe to enter into agreements for the supply of long lead time capital items, including the spray roaster and furnaces, most of which will be sourced in Australia to mitigate supply issues, which have had an impact. Paterson highlights that it is aiming to finish construction of its demonstration plant by March 2023 with commissioning to take place by June 30, 2023 and says that once the demonstration plant is operating successfully, a commercial plant will be developed to a capacity of more than 10,000 tonnes per annum, which is expected to generate in the order of $110 million in revenue and EBITDA of $42 million. He notes that project activities are on schedule with more than 46% of engineering completed and half of the equipment packages tendered to the market, while also giving insight into its project plans.
Latrobe Magnesium draws down $10 million for construction of its demonstration plant
