Latrobe Magnesium project finance facility increase announcement

Latrobe Magnesium (ASX:LMG) has successfully negotiated an increase in the facility limit of its project finance facility by $3M to $28M and extended the maturity date of the Facility from 31 March 2027 to 31 December 2027. This follows an increase in expected R&D refundable offsets projected to be received by LMG. The additional funding will provide operational working capital for ongoing MgO production scheduled to ramp up in October 2024. LMG will issue options under the Facility as consideration for the new terms of the Facility. The company's total R&D refundable offsets for the year ended 30 June 2024 will be in the order of $16M, with R&D refundable offsets for the year ending 20 June 2025 projected to be $13M.

Executive commentary on the project finance facility increase

The increase in the project finance facility will provide essential working capital for our ongoing MgO production, which is set to ramp up in October 2024. We are pleased to have successfully negotiated these terms, and the additional funding will support our operational needs. The extended maturity date of the Facility and the projected R&D refundable offsets further strengthen our financial position, allowing us to focus on the successful commissioning of our Demonstration Plant and the development of our Commercial Plant. These developments are crucial steps in our goal to extract and sell magnesium metal and cementitious material from industrial fly ash, contributing to a circular economy and ESG best-practice.

Summary of Latrobe Magnesium's project finance facility increase

Latrobe Magnesium (ASX:LMG) has secured an increase in its project finance facility by $3M to $28M, along with an extension of the maturity date to 31 December 2027. The additional funding will support operational working capital for the scheduled ramp-up of MgO production in October 2024. The company anticipates R&D refundable offsets of $16M for the year ended 30 June 2024 and projects $13M for the year ending 20 June 2025. The issuance of options under the Facility as consideration for the new terms demonstrates LMG's commitment to its financial strategy. With the successful commissioning of the Demonstration Plant and plans for the Commercial Plant, LMG aims to contribute to a circular economy and ESG best-practice while meeting the increasing demand for magnesium metal in various industries.