Western Magnesium Corporation (CVE:WMG) (FRA:M1V) has announced an increase to the totals raised in the close of the first tranche of the non-brokered private placement it announced on November 20, 2020.
The group said then the first tranche financing was closed on 5,599,171 units at a price of C$0.13 per unit for gross proceeds of C$727,892.28; the new amended totals have increased by 225,385 units at the same price for additional gross proceeds of C$29,300.07.
The company added that it has applied for a 30-day extension from the TSX Venture Exchange for the current non-brokered private placement.
READ: Western Magnesium announces creation of sales and corporate partnerships division
The maximum offering is for gross proceeds of up to C$7,000,000. Each unit will consist of one common share in the capital of Western Magnesium and one common share purchase warrant. Each warrant will be exercisable into one common share for a period of one year at a price of C$0.19 per share.
Completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including that of the TSX Venture Exchange. The securities issued will be subject to a statutory hold period in Canada for a period of four months and one day from the closing date.
Proceeds of the private placement will be used for working capital and to complete its commercialized pilot plant, the group said.
Western Magnesium's goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and lightweight. Unlike outdated and costly production processes, the company looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
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