Latrobe Magnesium Limited has received a non-binding letter of support for a US$15 million equity funding package to finance the feasibility study for its planned 50 thousand tonne per annum primary magnesium metal plant in South Carolina, United States.

Under the arrangement, the proposed investment is intended to be made directly into the company's U.S. project subsidiary. The letter of support remains non-binding and is conditional upon Latrobe Magnesium receiving an equivalent US$15 million in financing from a specified U.S.-based entity. The arrangement is also subject to the satisfactory completion of due diligence to the counterparty's satisfaction, the receipt of all required internal and regulatory approvals, and the negotiation, execution, and delivery of definitive written agreements and other documentation.

The counterparty issuing the letter of support is a large U.S.-based financial institution that invests alongside its clients across the United States and the Asia-Pacific region, and maintains relationships with various U.S. government entities. Latrobe Magnesium is continuing negotiations with other parties to secure supplementary funding to cover the feasibility study, land acquisition, and working capital for the U.S. subsidiary.

Latrobe Magnesium is advancing the 50 thousand tonne per annum primary magnesium metal plant using ferronickel slag feedstock secured via a binding 20-year memorandum of understanding with Société Le Nickel, operating under Eramet. To support the commercial viability of the South Carolina facility, the company has signed letters of intent covering 32 thousand tonnes per annum of committed demand from U.S. consumers and traders.

Magnesium features the best strength-to-weight ratio of all common structural metals and sees growing utilisation across the automotive, aerospace, defence, medical, and electronics industries. The company's development approach focuses on ESG best-practice by recycling industrial by-products, avoiding landfill, generating zero waste and tailings, encouraging a circular economy, and operating as a low carbon dioxide emitter.

Read the full announcement: LMG US Funding LOS