Latrobe Magnesium Secures Funding Boost as ASX 200 Eyes Greener Critical Mineral Production

May 07, 2025 01:44 PM AEST | By Team Kalkine Media

Google News:

Latrobe Magnesium Secures Funding Boost as ASX 200 Eyes Greener Critical Mineral Production — Image source: Shutterstock

Recent News

Fed Daly eyes fall for possible policy shift

Fifth Third Announces Three-Year, $20M Investment in North Nashville

Inogen Alliance Associate Awards: Environment Analyst Sustainability D...

New Zealand Construction Report 2025: Output to Contract by 1% Due to...

Highlights

Latrobe Magnesium raises $1.65 million via oversubscribed SPP

Funding supports commissioning of unique magnesium demonstration plant

Project aligns with critical mineral strategies and environmental goals

Latrobe Magnesium Ltd (ASX:LMG) has successfully raised $1.65 million through a share purchase plan (SPP), marking a significant step forward in its push to bring an innovative magnesium demonstration plant into operation. The funds, raised through strong shareholder interest, reflect growing market confidence in the company’s world-first magnesium extraction process, which repurposes industrial waste.

The SPP closed on May 2, bringing in $836,800 via the issuance of over 76 million shares at $0.011 each, with the new shares set to be issued on May 12. This follows a $2.75 million institutional placement in April, part of a larger $6.3 million funding initiative aimed at launching commercial-scale magnesium production.

The funds are being allocated toward the commissioning and ramp-up of operations at Latrobe Magnesium’s Stage 1 Demonstration Plant in Victoria’s Latrobe Valley. The plant, designed to produce 1,000 tonnes of magnesium annually, uses a proprietary low-emission technology to extract magnesium metal and cementitious materials from fly ash – a by-product of coal-fired power generation.

Once operational, the Demonstration Plant aims to process nearly 100% of the fly ash into marketable products including magnesium, silica, and calcium carbonate. Notably, the company’s environmentally-conscious approach supports Australia’s efforts to process critical minerals domestically, while reducing reliance on international supply chains.

This development comes at a time when investors are increasingly attentive to innovation within the ASX200, particularly in sectors that align with global decarbonisation goals. Magnesium, identified as a critical mineral by the Australian government, plays a vital role in industries such as automotive manufacturing, aerospace, and defence.

Latrobe Magnesium’s demonstration plant is nearing completion, with commissioning already underway and initial production expected in the coming months. The company anticipates the first saleable magnesium output by mid-2025, paving the way for a future 10,000-tonnes-per-annum commercial facility at the same location.

The strategy positions Latrobe Magnesium to become a key player in sustainable mineral processing, aligning with investor interest in environmentally-responsible ASX dividend stocks that offer both innovation and potential future returns.

By transforming industrial waste into valuable commodities using a low-carbon process, Latrobe Magnesium’s project not only addresses legacy environmental issues but also contributes to the national ambition of becoming a leading hub for critical minerals.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.