China Magnesium Corp. Ltd. plans to raise up to A$7.8 million in a rights offering to provide general working capital for its Australian and Chinese operations.

The rights are offered on the basis of one for every two shares held at 5 cents apiece, along with one free unlisted option exercisable at 10 cents per share by Feb. 15, 2019.

Up to about 157,448,517 new shares and 157,448,517 new options may be issued under the offering, the company said Oct. 18. The closing date for acceptances is Nov. 12, while the issue date is Nov. 19.

China Magnesium recently began magnesium lithium production at its Pingyao plant in China.