Latrobe Magnesium (ASX:LMG) received a $15 million non-binding letter of support from an undisclosed US-based entity to finance the feasibility study for its magnesium metal plant in South Carolina, according to a Thursday filing with the Australian bourse.

The company acknowledges that the letter of support is conditional and will continue negotiations with other parties to provide funding for the study, land acquisition and working capital, the filing said.

Shares rose nearly 36% in midday trade Thursday.