Latrobe Magnesium Ltd. said July 13 that it plans to raiseup to A$1.5 million through a share purchase plan for eligible shareholders anda share placement to sophisticated investors.
The company has already raised A$1million through the placement, under which Latrobe shares were offered at 2.6 Australiancents each. The remaining A$500,000 will be raised through a share purchase planwith the same offering price as the placement.
Latrobe's directors has indicatedtheir intent to take up their entitlements totaling A$60,000 and eligible shareholderscan apply to purchase share parcels from at least A$2,500 up to A$15,000.
The proceeds are earmarked for thebankable feasibility study of the company's Latrobe Valley magnesium plant in Victoria,Australia, and for general working capital.
Latrobe's 5,000-tonne-per-annum plantis expected to start production at the end of 2017 using the company's patentedextraction process.
The company recently took full controlof the hydromet process and its worldwide patents with the acquisition of Ecoengineers Pty. Ltd., which held a 50% interestin the technology.