NEW YORK, NY – TheNewswire – August 20, 2019 – Western Magnesium Corporation (TSXV:WMG)(Frankfurt:M1V) (OTC:MLYF) (the “Company” or “Western Magnesium”) is pleased to announce it has retained Moody Capital (“Moody”), a full-service securities brokerage and investment banking firm, as placement agent to assist Western Magnesium in a capital raise to help fund the Company’s aggressive growth strategy.
Sam Ataya, CEO of Western Magnesium stated, “We are pleased with this Agreement and that Moody Capital shares our vision of how Western Magnesium can become the world’s foremost producer of low-cost, green magnesium metal. This additional capital will enable us to invest in the resources needed to strengthen our organization as we prepare for commercialization of this strategic commodity.”
Robert Rosenstein, President and CEO of Moody Capital, who has been actively involved in the sourcing, structuring, placing and closing of numerous financing transactions valued at over $500 million, said, “Ataya and his team at Western Magnesium are setting the pace for the resurgence of responsible, sustainable manufacturing in the United States. We are proud to represent Western Magnesium in helping finance their vision through a strong capital markets transaction.”
Under the terms of the investment banking agreement, Moody Capital will be working with the Company in connection to a proposed private placement of possible equity and/or debt securities of the Company for the purposes of helping the Company achieve its business goals. Any securities issued under the Investment Agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary hold periods under applicable securities laws.
In summarizing the transaction, Ataya added, “To move Western Magnesium into the next growth phase, we are focused on an effective capital raise, and Moody’s deep appreciation for our technology and their commitment to ensuring a successful raise makes them an ideal member of our team.”
About Moody Capital
Moody Capital’s Investment Banking group is focused on developing long-term relationships with senior management teams and significant stakeholders of micro-cap and small-cap market companies. The Investment Banking group seeks to deliver value-added solutions with a focus on the needs of its clients. The firm has key relationships with a large number of hedge funds, institutional investors and other investment managers who are active in investing in small and micro-cap opportunities.
About Western Magnesium
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, Western Magnesium looks to use a continuous silicothermic process to produce pure magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that we will conduct and close a private placement and that we can become a a major U.S. producer and distributor of primary, high grade, low cost magnesium metal. Actual results may differ materially from those currently anticipated due to a number of factors, including the Company’s dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, we may not be able hire and retain skilled employees, and other risks associated with being a mineral exploration and development company. We may not be able to close with interested investors on our intended private placement because of perceived risks or market conditions. The Company undertakes no obligation to update forward-looking information except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For additional information please visit our website at
http://www.westmagcorp.com or view our profile on SEDAR
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