La Trobe Magnesium (ASX:LMG) reduces rate on $23m loan
The magnesium producer with a plant in Victoria's La Trobe Valley will pay a reduced interest rate of 12 per cent, down from 14 per cent.
ASX:LMG MCAP $164.6M
Belinda Cameron Thematica Editor [email protected] 17 December 2021 11:55 (AEDT)
Source: La Trobe Magnesium/Twitter
La Trobe Magnesium (LMG) has managed to reduce the interest rate for its $23 million financing facility with RnD Funding
The Victorian magnesium producer will pay a reduced interest rate of 12 per cent, down from 14 per cent, on the loan
LMG says the reduction is a function of the additional security available to RnD following it's decision to purchase a property in Hazelwood North for $4.5 million
The company is planning to pay back up to $15 million to RnD in 2023 once it receives tax incentives, potentially bringing the interest rate down to 10 per cent
La Trobe Magnesium is down 5.05 per cent at 9.4 cents each
La Trobe Magnesium (LMG) has managed to reduce the interest rate for its $23 million financing facility with RnD Funding.
LMG sought the project funding from RnD so it can push ahead with the construction of a $39 million plant, designed to demonstrate the use of LMG's Hydromet technology.
This technology works to extract high grade magnesium and other valuable byproducts from both fly ash and ferro nickel slag feedstocks.
LMG explains the rate reduction is a function of the additional security available to RnD following LMG's decision to purchase a property in Hazelwood North for $4.5 million.
La Trobe Magnesium recently agreed to buy 320 Tramway Road from DG & J Di Fabrizio Steel Fabrications for $2.25 million in cash and $2.25 million in shares.
LMG is planning to pay back up to $15 million to RnD before October 2023 once it receives research and development tax incentives.
Once the company pays down the loan, the interest rate may potentially drop further from 12 per cent to 10 per cent.
La Trobe Magnesium was down 5.05 per cent at 9.4 cents each at 11:54 am AEDT.
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