Western Magnesium Corporation announced that it has entered into a security purchase agreement for the issuance of unsecured convertible debentures for gross proceeds of $3,748,561 on November 7, 2022. The debentures bear interest at the rate of 15% per annum, matures on April 7, 2024, and is convertible into common shares to the greater of $0.09 per share and the minimum conversion price permitted by the TSX Venture Exchange at the time of conversion. In addition, upon each conversion of the debentures, the holder is entitled to receive a warrant to purchase common shares equal to 100% of the conversion shares being issued on such conversion, subject to adjustment as provided therein.

The initial exercise price per warrant share shall be $0.17 with expiry period of 5 years. In event of default debentures, the interest rate shall increase to the lesser of 20% per annum or the maximum rate permitted under applicable law until paid.