Western Magnesium Corporation (CVE:WMG) (FRA:M1V) (OTCMKTS:MLYF) has raised C$698,592.21 gross after it closed the first tranche of a previously announced private placing.
The firm is focused on becoming the world's low-cost producer of eco-friendly and high-quality magnesium - a strategic metal - and is building out its first commercialized pilot plant in Canada in a bid to generate output by the first quarter of 2021.
READ: Western Magnesium says it continues to operate at full capacity during the current challenging times
The financing will see the group raise a maximum of C$7 million and the first tranche was closed on 5,373,786 units at C$0.13 each, the company said in a statement.
Each unit consists of one Western Magnesium Corp share and one share purchase warrant. Each warrant is exercisable into one share for one year at a price of C$0.19 each.
In September, when the placing was announced, the firm said the proceeds would be used for working capital and to complete its commercialized pilot plant.
Last week, Western Magnesium told investors it continues to operate at full capacity during the current challenging times, made further complicated due to the resurgence of coronavirus (COVID-19) restrictions, and it is continually assessing timelines for the completion of the plant.
It said its internal timelines and staff have not been impacted by any of the ongoing new restrictions and it was working diligently to overcome interruptions and slowdowns that suppliers it works with are facing. It said a 'great deal' had been accomplished toward the build-out of the pilot plant.
In its operational update, it noted the following:
- Design Engineering is complete enabling the firm to move forward with the buildout of the reactor;
- All permits are in place and contractors, fabricators, and suppliers, which have been selected, can now begin the work on the plant facilities;
- A portion of long-lead items for the pilot plant are now complete and already shipped;
- Fourteen new operational employees for the commercialized pilot plant have been hired and will start work at the facility on January 11th, 2021; and
- Finally, field engineering is underway allowing construction contractors to commence immediately in the plant facility
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