China Magnesium Corporation (ASX:CMC) has closed its partially underwritten rights issue, raising over $1 million.
The company received subscriptions for 21,206,154 shares priced at $0.04 each, raising $848,246, and will place shortfall shares to its underwriters, who have agreed to subscribe for $162,000 worth of shares.
Each share includes one free attached option exercisable at $0.07 on or before 30 September 2016.
It had sought to raise up to $1.5 million through the issue of 37.5 million shares.
Proceeds will be used to provide the company with additional general working capital and flexibility to further its existing magnesium and semi-coking business.
In July, CMC installed and tested the first semi-coke crackers at its Pingyao operations in China, enabling it to start magnesium production using waste semi-coke gas instead of using the coal-to-gas facilities as originally envisaged when the magnesium plant was built.
The conversion of the other coal-to-gas units is underway.
Its magnesium ingot production operation is licensed to expand output to 105,000 tonnes per annum.
