Magnes um
ABN: 52 009 173 611
Latrobe Magnesium to raise $1.4 million in
Placement and Share Purchase Plan
Funds to assist with bankable feasibility study and working capital
15 April 2015, Sydney Australia: Latrobe Magnesium Limited (ASX:LMG) has raised $900,000 in a placement to sophisticated investors at an issue price of $0.01 per share. LMG will raise an additional $500,000 via a Share Purchase Plan (SPP) for shareholders holding fully paid ordinary shares in LMG at the record date of 5pm EST 14 April 2015.
The offer price will be at the same as the placement of $0.01 per share, a 11% discount to the volume weighted average closing price of LMG securities over the past five days when sales were recorded.
The Directors have indicated that they will be taking up their entitlements in the SPP
to an amount of $60,000.
Under the SPP each shareholder is able to apply to purchase share parcels from a minimum of $2,500 to any amount up to $15,000.
LMG believes this offer will be appealing to shareholders with a steady stream of news expected leading up to the start of construction of the LMG magnesium plant later this year. The offer comes after important progress in recent weeks from cement trials based on the sample processed in China. The 56 day cement results for this test work are expected to be announced shortly.
Funds raised will be used for assisting to finance the bankable feasibility study for the Latrobe Magnesium Project and working capital.
Shares will be allocated soon after the closing date of 5pm EST 15 May 2015 and no later than 22 May 2015.
David Paterson
Director
Suite 307, 16-20 Barrack Street, Sydney, NSW 2000 Phone: +61 (0)2 9279 2033
Postal Address: GPO Box 4729, Sydney, NSW 2001 Fax: +61 (0)2 9279 3854
Latrobe Magnesium Limited 15-Apr-15
About Latrobe Magnesium
Latrobe Magnesium is developing a magnesium production plant in Victoria's Latrobe Valley using its world-first patented extraction process. LMG intends to extract and sell magnesium metal and cementitious material from industrial fly ash, which is currently a waste stream from brown coal power generation.
LMG has completed a pre-feasibility and an adjustment study validating its combined hydromet / thermal reduction process that extracts the metal. Production from its initial 5,000 tonne per annum magnesium plant is due to start at the end of 2016. The plant will be in the heart of Victoria's coal power generation precinct, providing immediate access to feedstock.
LMG plans to sell the refined magnesium under long-term contracts to Australian and American users. Currently, Australia imports 100% of the 10,000 tonnes annually consumed.
Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones and power tools.
The LMG project is at the forefront of environmental benefit - by recycling power plant waste, avoiding landfill and is a low CO² emitter.
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