- La Trobe Magnesium (LMG) purchases a steel fabrication plant for a fixed price of $4.5 million
- The Di Fabrizio family have accepted a consideration of $2.25 million in cash with the remainder to be issued as 22.5 million shares at 10 cents each
- The property contains 14 thousand square metres of buildings in the form of an administration building and a number of large industrial buildings
- La Trobe Magnesium says the purchase of the site allows it to plan future expansions
- Shares have been up 2.4 per cent, trading at 10.8 cents
La Trobe Magnesium (LMG) has purchased a steel fabrication plant for a fixed price of $4.5 million.
The property at 320 Tramway Road, Hazelwood North in Victoria was purchased from the Di Fabrizio family, who have accepted a consideration of $2.25 million in cash. Additionally, a further $2.25 million will be issued to the leaseholders in the form of 22.5 million shares at 10 cents each.
The timing for the issue of the shares will be subject to La Trobe refreshing its issuing capacity at its upcoming AGM in January 2022.
La Trobe announced in April that it had exercised its option to lease the property for a period of three years, with the option to acquire the property at a fixed price.
The property contains 14 thousand square metres of buildings including an administration and several industrial buildings which the company says are ideal to house its initial and expanded plants. According to La Trobe, the site is also close to rail, freeway, gas and water pipelines.
The company says the purchase of the site allows the company to plan its future expansions, obtain appropriate business insurance, save rent through the construction phase and benefit from its own site improvements.
Shares were up 2.4 per cent, trading at 10.8 cents at 11.47 am AEDT.