Latrobe Magnesium acquires strategic location of magnesium plant

Latrobe Magnesium Limited (ASX:LMG) has exercised its option to pay $2.25 million in cash and $2.25 million in LMG shares for 10 cents (22.5 million LMG shares) to buy Hazelwood North's 320Tramway Road Pte Ltd from DG & J Di Fabrizio Steel Fabrications.

The Di Fabrizzio family accepted a fixed price of $4.5 million under its three-year lease, depending on when LMG updates its offering capacity at its upcoming annual general meeting in January 2022.

The site will enable LMG to accommodate and expand its factory.

LMG is developing a magnesium production plant in Ratlob Valley, Victoria, using its world's first patented extraction process.

The company plans to extract and sell magnesium metals and cementing materials from industrial fly ash, which is currently a waste stream for Yallourn lignite power generation.

In October, LMG was given a 12-month option to sign a three-year venue lease at a fixed rent and to buy the property at a fixed price during that period.

The 320Tramway Road contains buildings in the form of an administrative building of 14000 square meters and some large industrial buildings with a height of 12 meters-well suited to the needs of LMG.

The site is close to railways, highways, natural gas and water pipelines, as well as a new solar development project, which has been approved by the Ratlob City Council and is in the approval stage of the Victorian government.

LMG has the ability to connect to this solar development, so its magnesium and other products will produce zero or little carbon dioxide emissions.

The purchase of sites enables LMG to plan its future expansion, obtain appropriate commercial insurance, save rent through the construction phase and benefit from its own site improvements.