Latrobe Magnesium Limited (ASX: LMG) has announced a non-renounceable rights issue aiming to raise approximately $3.4 million, coupled with a cleansing offer. The company, a resources firm developing a patented hydrometallurgical extraction/thermal reduction process to produce magnesium metal from waste resources at its Victorian demonstration plant, is undertaking the capital raise to fund key development initiatives. Shaw and Partners has been appointed as the lead manager for both the offer and a concurrent placement, also serving as the underwriter for the rights issue.
Under the rights issue, eligible shareholders will be offered one new share for every 15 shares held, at an issue price of $0.015 per new share. Shareholders who accept their full entitlement will also have the opportunity to apply for additional new shares from any shortfall, up to 100% of their entitlement. This initiative runs alongside a placement to qualified institutional, sophisticated, and professional investors, which is set to raise $5.1 million by issuing approximately 339 million new shares at the same $0.015 price. The combined proceeds from these capital raisings are earmarked for the completion and commissioning of the Phase 1B pyrometallurgical plant, procurement of long-lead items for the Phase 1C magnesium refinery, and funding site and corporate costs for FY27.
Concurrently, a cleansing offer will see the issuance of up to 20 million Lead Manager Options to Shaw and Partners and up to 22.7 million Sub-Underwriter Options to sub-underwriters, collectively known as Broker Options. These options will be issued for nil consideration, carry an exercise price of $0.0205 per share, and are set to expire on 13 July 2031. Importantly, these Broker Options will not be quoted on the ASX. The rights issue opens on Wednesday, 30 September 2026, with the record date for entitlements being Friday, 25 September 2026, and is expected to close on Monday, 19 October 2026.
