Latrobe Magnesium (ASX:LMG) has entered a binding agreement with Long State, a global investment company based in Singapore, New York, and Hong Kong, for up to $6 million in initial funding to support the installation and commissioning of the magnesium metal section of its plant.
Long State focuses on funding growth-oriented companies in the critical minerals sector.
Under the terms of the facility, Latrobe can receive up to $4 million in two initial tranches prior to 30 September 2026, with funding to be used to install and commission furnaces to produce magnesium metal, improve the hydromet process, and provide general working capital.
An additional $2 million will be available on terms to be finalised and agreed between the two parties.
The facility also follows a share placement agreement between Latrobe and Long State, which allows the company to access up to $16 million over four equal tranches through the issuance of shares pursuant to a swap arrangement. The share placement agreement is intended to provide the company with significant capital and liquidity while maintaining flexibility and control over the placement terms.
CEO David Paterson says the company is pleased with the terms of the agreement, which provide both immediate and long-term access to funding.
“Long State has a strong track record on investing in companies with an attractive growth trajectory and providing the financial backing for them to achieve their strategic objectives.”
Long State Managing Director Philip Ho says the company is pleased to support Latrobe at such a significant stage.
“The company’s demonstration plant represents a high-quality, strategically significant asset, underpinned by strong fundamentals and improving market dynamics.
“Combined with an experienced management team and a clear development strategy focused on creating shareholder value, we see Latrobe Magnesium as a highly attractive investment opportunity.”
Ho joined Mining.com.au earlier this year to discuss his evolving focus on battery metals, uranium, and precious metals, highlighting undervalued opportunities across the mining sector.
Click here to listen to the full interview:
Latrobe Magnesium is developing a magnesium metal demonstration plant in Victoria’s Latrobe Valley.
Write to Amy Rotman at Mining.com.au
Images: Latrobe Magnesium
