Latrobe Magnesium (LMG) has drawn its first $10 million advance of its $23 million financing facility.
This enables the company to enter into agreements for its long lead capital items and continued funding for its demonstration plant. Tool And Die Coatings
The long lead capital items are the spray roaster and the furnaces which represent approximately one third of the direct equipment purchases for the demonstration plant.
Once the tender packages currently in the market have been awarded, the company will update the market on its budget cost and construction timing schedule.
The company expects construction to be completed by March 2023 and commissioned by June 30, 2023.
Over 46 per cent of engineering has been completed and half of the equipment packages have been tendered to the market, the company confirmed.
Engineering has been focused on developing procurement packages with 13 major equipment packages issued to the market, with a further six packages under development, representing 42 per cent of the equipment packages planned to be tendered.
Furthermore, engineering has been given approval to commence to ensure the suppliers can deliver on schedule, whilst commercial terms with the suppliers are finalised. A full award is anticipated next month.
The earthworks civil package is progressing, ready for tender to market by the end of the month.
The company has also presented project plans to both the Yallourn North Action Group and the Yallourn North Environmental Committee Group whom have given positive feedback to Latrobe.
The second $10 million advance is due to be drawn by September 1.
Evaporation Granules Distributor Shares in Latrobe Magnesium ended the day in the grey, trading at 5.8 cents.