Latrobe Magnesium (ASX:LMG) has received a conditional, non-binding letter of support for US$15 million ($21.12 million) in equity funding for its proposed 50,000 tonnes per annum (tpa) magnesium metal plant in South Carolina, US.
The funding commitment comes from a large US-based financial institution. To receive the capital, Latrobe must secure an equivalent US$15 million in financing from a specified confidential US entity, complete satisfactory due diligence, and obtain all necessary internal and regulatory approvals.
The funding will be directed toward the Feasibility Study for the US project, which will be invested directly into Latrobe’s US project subsidiary.
The company acknowledges the conditional nature of the letter of support and intends to continue negotiations with other parties regarding funding for the study, land acquisition, and working capital requirements.
According to Latrobe, the proposed South Carolina facility will utilise ferronickel slag as feedstock. It also includes site capacity for a future phase two expansion to 100,000tpa.
Latrobe’s patented extraction process recovers magnesium metal, cementitious materials, and other products from industrial by-products.
The company currently operates a demonstration plant in Victoria’s Latrobe Valley. Full commissioning, including magnesium metal production, is expected in the second half of 2026, with 100% of output allocated to the US market through distribution partner Metal Exchange.
It also holds development rights for a 10,000tpa commercial plant in the Latrobe Valley, currently on hold; and an international facility in Sarawak, Malaysia, with planned capacity up to 100,000tpa.
The company has completed the first phase of a Prefeasibility Study for the Malaysian project.
Latrobe Magnesium is developing a magnesium metal demonstration plant in Victoria’s Latrobe Valley using its patented extraction process.
Write to Paula Fabe at Mining.com.au
Images: Latrobe Magnesium
