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Largo Resources (TSXV:LGO) announced that it has closed the first tranche of its private placement for proceeds of C$18,221,925 from the sale of 22,777,406 units.
Largo Resources (TSXV:LGO) announced that it has closed the first tranche of its private placement for proceeds of C$18,221,925 from the sale of 22,777,406 units.
As quoted in the press release:
Of the proceeds realized from the First Tranche, a total of $12,250,000 will be used to repay in full the existing principal and interest on the C$12 million convertible note facility extended to the Company by funds managed by Arias Resource Capital Management LP (the “ARC Funds”) and the remainder will be used for general corporate purposes relating to the development of the Maracas Menchen Mine.
Each Unit was sold at a price of Cdn$0.80 and consists of one common share and one half of one common share purchase warrant (the “Units”). Each whole warrant entitles the holder to acquire one further common share at a price of $1.50 per common share for a period of one year from the date of issuance.
Largo is also pleased to add that, as a result of increased demand from investors, the previously announced Cdn$70 million Offering has been increased by up to Cdn$5 million for a total Offering of up to Cdn$75 million. The Offering is being made on a brokered and non-brokered basis.
Proceeds from the First Tranche were received from Units sold entirely on a non-brokered basis and include proceeds from the sale of 15,312,498 Units purchased by the ARC Funds. The remainder of the Offering is expected to close on or about May 19, 2015.
Click here to read the full Largo Resources (TSXV:LGO) press release.