- Latrobe Magnesium (LMG) has placed its shares in a mid-week trading halt as the company plans to unveil a proposed capital raise
- The company’s securities will remain halted from trading until Friday, when full details of the financing are released to shareholders
- LMG is focused on developing its magnesium production plant in Victoria’s Latrobe Valley, with the company recently increasing its planned output amid high demand
- The materials stock announced last week it had expanded the output from 3000 tonnes per annum (tpa) to 10,000 tpa amid increased global demand
- Latrobe Magnesium last traded at 13 cents per share
Latrobe Magnesium (LMG) has placed its shares in a mid-week trading halt as the company gets ready to unveil a fresh capital raising.
The future magnesium producer’s securities will remain halted from trading on the ASX until Friday, when full details of the fundraise are released to shareholders.
LMG is currently focused on developing its magnesium production plant in Victoria’s Latrobe Valley, using a combined hydromet and thermal reduction process.
The company said last week it was planning to increase the proposed output at the plant amid high global demand for magnesium products.
“With China’s magnesium production being restricted and the subsequent worldwide
shortage pending, the LMG Board has decided to investigate increase the size of the initial plant,” the company explained.
In particular, LMG revealed it would expand the demonstration plant’s output from 3000 tonnes per annum (tpa) to 10,000 tpa.
Latrobe added that it had already allocated 8000 tpa via its current offtake agreements and received enquiries for more than 2000 tpa.
The increase in planned output from the Latrobe Valley plant should result in $110 million worth of revenue and roughly $42 million in earnings.
Before today’s trading halt, Latrobe Magnesium was trading at 13 cents per share.