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Largo Resources Ltd. (TSXV:LGO) announced that it’s entered into a short-term secured loan agreement with Mark Smith, the company’s CEO and director.
Largo Resources Ltd. (TSXV:LGO) announced that it’s entered into a short-term secured loan agreement with Mark Smith, the company’s CEO and director. Under the agreement, Smith has advanced Largo a US$1-million non-revolving term loan with an interest rate of 12-percent a year.
As quoted in the press release:
The proceeds of the Bridge Loan will be used for ongoing working capital requirements at the Company’s Maracás Menchen Mine for the period prior to the Company’s restructuring of its existing credit facilities with its consortium of Brazilian lenders and the related equity injection as disclosed in its press release of December 17, 2015. The Bridge Loan will have a 30-day term, subject to acceleration in certain events. The Bridge Loan is secured by a general security agreement over the assets of the Company. As consideration for entering into the Bridge Loan, the Company will pay to Mr. Smith a loan establishment fee in the amount of US$40,000.
The entering into of the Bridge Loan was considered and approved by the board of directors of the Company. Mr. Smith declared a conflict and recused himself from voting on the Bridge Loan. The remaining directors voted unanimously to approve the Bridge Loan.
Click here to read the full Largo Resources Ltd. (TSXV:LGO) press release.