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Jan 27, 2010
LARGO RESOURCES ANNOUNCES EXTENSION OF TERM TO PURCHASE ADDITIONAL INTEREST AT ITS MARACAS PROJECT, BRASIL FROM ODEBRECHT S.A. AND VALE S.A.
- Option to purchase remaining 10% interest also extended
14:33 EST Wednesday, January 27, 2010
TORONTO, ONTARIO--(Marketwire - Jan. 27, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or "the Company") is pleased to announce that it has negotiated a formal extension of the term during which it can purchase an additional 40% interest in Companhia de Maracas, the operating company and holder of its Maracas Project, Bahia State, Brazil from Odebrecht S.A.("Odebrecht") and Vale S.A. ("Vale") to March 31, 2010. In addition the Company has extended an option to acquire the final 10% interest in Companhia de Maracas held by Odebrecht and Vale to June 30, 2010.
Largo currently holds a 46.5% interest in Companhia de Maracas and Largo's partner at Maracas, Metais Nao Ferrosos Da Bahia Ltda. ("MNFB"), holds a 4.5% interest in Companhia de Maracas. Through these extensions, Largo maintains its ability to acquire up to a 90% interest in Companhia de Maracas and MNFB maintains its ability to acquire up to a 10% interest.
In consideration for these extensions, the Company has made an initial deposit of US$250,000 to Vale and Odebrecht that will be counted towards the payment of US$5 million plus interest that Largo will have to make by March 31st, 2010 for Largo and MNFB to acquire an additional 40% interest in Companhia de Maracas. In order for Largo and MNFB to acquire the final 10% interest in Companhia de Maracas, Largo must make a US$8 million payment to Odebrecht and Vale prior to June 30, 2010. If Largo completes both payments, it shall hold a 90% interest in Companhia de Maracas and MNFB will hold a 10% interest.
Mark Brennan, Largo's President and CEO, stated: "We are very appreciative to Odebrecht and Vale for their support and understanding over the past year. It has been an extremely volatile period but we are now very optimistic about the road ahead."
In addition, Largo announces that it has granted a total of 4,150,000 options to various officers, directors, consultants and employees under the stock option plan of the Company. The options are exercisable at $0.24 per option and expire on January 27, 2015. The options shall vest immediately subject to the four month regulatory hold period. The grant of options remains subject to regulatory approval.
About Largo
Largo Resources Ltd. is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. The Company also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. The company is listed on the TSX Venture Exchange under the symbol LGO.
For more information please refer to Largo's website: www.largoresources.com
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