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April 27, 2010
LARGO OBTAINS RECEIPT FOR FINAL PROSPECTUS
07:30 EDT Tuesday, April 27, 2010
TORONTO, ONTARIO--(Marketwire - April 27, 2010) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or the "Company") is pleased to announce that it obtained a receipt on April 26, 2010 in connection with the filing of a final prospectus (the "Prospectus") in the province of Ontario. The prospectus qualifies for distribution 36,363,637 common shares (the "Common Shares") and 18,181,818 common share purchase warrants (the "Warrants") of the Company issuable upon the automatic exercise of 36,363,637 previously issued special warrants of the Company (the "Special Warrants"). The automatic exercise of the Special Warrants is scheduled to occur at 4:59 p.m. (Toronto time) on May 3, 2010, being the fifth business day after the issuance of the receipt for the Prospectus.
As previously announced, the Special Warrants were issued by way of a private placement which closed in two tranches on March 5 and March 10, 2010, respectively, at a price of CDN$0.22 per Special Warrant, resulting in gross proceeds to the Company of approximately CDN$8,000,000. Each Special Warrant will be automatically exercised, without payment of additional consideration or any further action required on the part of the holder thereof, for one unit of the Company consisting of one Common Share and one-half of one Warrant. Each Warrant will entitle its holder to purchase one additional common share of the Company at a price of CDN$0.35 per share until March 5, 2011. Byron Securities Limited and Clarus Securities acted as agents in connection with the brokered portion of the private placement.
A notice is being sent to all registered holders of Special Warrants, together with a copy of the Prospectus, advising of the automatic exercise of the Special Warrants.
The Company also announces that the Prospectus contains certain additional and revised information to correct and supplement the "Executive Compensation Disclosure" section in Largo's management information circular dated May 6, 2009 (the "Circular"). Specifically, the Prospectus includes a compensation discussion and analysis, a revised Summary Compensation Table which includes amended disclosure on option awards to named executive officers and additional information with respect to termination and change of control benefits. Please refer to Schedule "A" of the Prospectus which may be found under the Company's profile at www.sedar.com.
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 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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