Western Magnesium Corp. (TSX-V:WMG, OTCQB:MLYF) has announced a non-brokered private placement of unsecured convertible notes of up to $3.75 million to complete the company's commercial pilot plant and for general working capital.
The pending producer of primary magnesium metal said the notes will be convertible into common shares of the company for a period of five years from the closing date, at a price of $0.09.
In addition, for every conversion share issued, one Class A common stock purchase warrant will also be issued, exercisable at a price of $0.17 for a period of five years from the closing date.
READ: Western Magnesium achieves 99.62% magnesium metal purity during second pilot plant calibration run
The completion of the private placement and payment of any commission and fees remain subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The securities issued will be subject to a statutory hold period of four months and one day from the closing date.
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Unlike outdated and costly production processes, Western Magnesium looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and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