Latrobe Magnesium (ASX:LMG) said it plans to raise AU$750,000 via a share purchase plan (SPP), for shareholders to purchase additional shares up to a maximum of AU$30,000, at a price of AU$0.011 per share, the filing said.

The issue price share represents an 18.3% discount to the volume-weighted average price of the company's shares for the five trading days before April 1 and the maximum number of shares to be issued under the SPP will not exceed 68.2 million, the filing said.

The offer will be open to eligible Australian and New Zealand shareholders registered as holders of fully paid ordinary shares as of April 3, with the SPP set to open on April 10, the filing added.

The offer will be available on a first-come, first-served basis until the funds are raised, the company said.

Funds raised from the SPP will be used as working capital, the company added.

Shares of the company fell 8% on market close.