TORONTO, Jan. 24, 2016 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is pleased to announce that it has closed the second and final tranche (the "Second Tranche") of its non-brokered private placement offering (the "Offering") of Units (as defined below) as previously disclosed in Largo's press release dated December 28, 2016 and January 9, 2017.
The closing of the Second Tranche resulted in gross proceeds to the Company of CDN$997,250.40 from the sale of 2,216,112 units of the Company (the "Units"), which, together with the first tranche of the Offering (see the Company's news release of January 9, 2017), has resulted in aggregate proceeds to the Company of CDN$16,083,053.55 from the sale of 35,740,119 Units. The proceeds realized from the Second Tranche will be used for ongoing working capital requirements at the Company's Maracás Menchen Mine and for general corporate and working capital purposes.
Mark Smith, President and Chief Executive Officer for Largo, stated: "We sincerely appreciate the support of both our new and existing shareholders who participated in this private placement. This continued support from our various stakeholders has been the foundation on which we have been building our success and taking advantage of our world-class vanadium resource." He further stated: "Management is excited about the Company's prospects in 2017, as the full ramp up of production, lower unit production costs and industry-leading product quality at the Maracás Menchen Mine simultaneously combine with the significant improvement in the global vanadium market."
Each Unit was sold at a price of CDN$0.45 and consists of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant issued in the Second Tranche will be exercisable into one Common Share at a price of CDN$0.65 per share for a period of three years from closing of the Second Tranche. All securities issued in the Offering will be subject to a four-month hold from the date of issuance.
Largo Resources Ltd. is a growing strategic mineral company focused on the production of vanadium pentoxide at its Vanadio de Maracás Menchen Mine. Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to grow over the medium and long term. Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada. For more information, please visit www.largoresources.com.
This press release contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Largo's development potential and timetable of its operating, development and exploration assets; Largo's ability to raise additional funds necessary; the future price of vanadium, tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As.
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SOURCE Largo Resources Ltd.
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