Latrobe Magnesium Limited (ASX: LMG) today announced it has secured firm commitments for an A$8.5 million equity raising to advance its strategic objectives. Latrobe Magnesium is a magnesium metal developer with projects in Australia, the United States, and Malaysia, utilising a patented extraction process to recover magnesium metal and other products from industrial by-products like brown coal ash and ferronickel slag. The capital raise is comprised of an A$5.1 million institutional placement and an underwritten non-renounceable entitlement offer of A$3.4 million, which saw strong support from both new and existing institutional and high net worth critical metals investors.
The funds raised are earmarked for several key initiatives, including the completion of final structural works for the pyrometallurgical component (Phase 1B) of the company’s Latrobe Valley Demonstration Plant. Additionally, capital will support a CY26 magnesium crown commissioning and production campaign, the establishment of the initial 50 kilotonnes per annum (ktpa) US plant study, and general working capital. Incoming Chief Executive Officer, Robert Stein, stated that these funds would enable LMG to pursue its growth agenda in a disciplined and focused manner, aiming for first magnesium metal production at its Demonstration Plant and advancing its US-based growth option.
Magnesium is increasingly recognised as a critical mineral in several major economies, vital for defence, aerospace, and electric vehicle applications due to its superior strength-to-weight ratio. With global primary supply highly concentrated, LMG’s patented extraction process offers a pathway to new sovereign magnesium production. The placement shares will be issued at A$0.015 each, representing a 6.8% discount to the five-day volume weighted average price. The entitlement offer, also at A$0.015 per share on a one-for-fifteen basis, is fully underwritten by Shaw and Partners. The company also confirmed an agreement with Long State Investment Limited to settle a swap component from a previous arrangement, with Long State expected to sell its remaining LMG shares.
