Largo Resources Announces Signing of Binding Term Sheet for New Debt Facilities

Largo Resources (TSX:LGO) has announced further to its press release dated November 16, 2016, it has entered into a binding term sheet in Brazil for a new debt facility.
As quoted in the press release:

The terms of the 2017 Facilities include:

• Working capital facility of up to R$140,000,000 (Brazilian reais), granted by the Lenders
• The 2017 Facilities will be used for the payment of principal and interest falling due during 2017 on the existing loan from theBrazilian Development Bank (the “BNDES Loan”), as well as principal and interest falling due during 2017 on existing debt facilities from certain banks within the group of Lenders.
• The grace period for the amortization of principal of the 2017 Facilities will be from the initial disbursement date thereof to March 29, 2018.
• Principal and interest payments on the 2017 Facilities become payable on a quarterly basis, in arrears, starting on March 30, 2018, over a period of 56 months.
• Each of the 2017 Facilities shall have an applicable interest rate equivalent to the Brazilian interbank rate (the “CDI Rate”) plus 5.7% per annum.
• The final maturity date of the 2017 Facilities will be 72 months after the initial disbursement date.

The transactions contemplated in the binding term sheet are dependent on the fulfillment of certain conditions precedent by the Company prior to closing, including, injecting an additional US$15,000,000 for on-going working capital requirements at the MaracásMenchen Mine prior to December 31, 2016. The Company is thereafter also obligated to inject an additional US$5,000,000, prior toJune 30, 2017. Largo anticipates that the process will be concluded prior to the disbursement date (estimated to occur on January 12, 2017).

Click here to read the full press release.