Western Magnesium Corp. (TSX-V:WMG, OTCQB:MLYF) has announced the closing of the first tranche of its non-brokered private placement previously announced on November 16, 2022, with the issue of 2,295,273 units for gross proceeds of US$188,530.47.
The total unit offering is for gross proceeds of U$1.3 million. Proceeds of the private placement will be used for working capital and to complete its commercialized pilot plant, the company said.
Each unit in the offering consists of one common share in the capital of the company and one common share purchase warrant. Each warrant will be exercisable into one common share for a period of one year at a price of U$0.18 per share.
READ: Western Magnesium Corp arranges $3.75M private placement to complete pilot plant and for working capital
Completion of the private placement and payment of any commission and fees remains 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 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 Unlike outdated and costly production processes, the company looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy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.
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