Largo Resources Closes Second Tranche of its Financing

Largo Resources Ltd. (TSXV:LGO) announced it has closed the second tranche of its C$75 million unit offering from the sale of 69,952,639 units for proceeds of $55,962,114. Along with the first tranche, the aggregate proceeds to date are C$74,184,039 for the sale of 92,730,045 units.

As quoted in the press release:

The closing of the Second Tranche resulted in proceeds to the Company of Cdn$55,962,114 from the sale of 69,952,639 Units which together with the first tranche, which closed on May 14, 2015 (see the Company’s news release of May 15, 2015), has resulted in aggregate proceeds to the Company to date of Cdn$74,184,039 from the sale of 92,730,045 Units.

Proceeds realized from the Second Tranche will be used for the development of the Vanadio de Maracás Menchen Mine and related corporate purposes, including, without limitation, meeting certain conditions precedent set out by the Company’s lenders in their firm commitment letters for the restructuring of the Company’s debt as more fully set out in Largo’s May 7, 2015 press release.

It is expected that a third and final non-brokered tranche of the Offering will close on or about May 26, 2015 for approximately an additional Cdn$1,015,960 worth of Units, bringing the final aggregate amount raised to approximately Cdn $75.3 million.

Mark Smith, president and CEO of Largo Resources, commented:

We are extremely pleased to have concluded this private placement that we increased a couple of times due to strong demand.  It represents a major milestone for the Company’s ongoing ramp-up. This will not only allow us to aggressively continue our optimization efforts for our ongoing ramp-up process at Maracas, but also enables us to initiate expansion plans at the facility.

Further, we are greatly encouraged by the overwhelming demand we received to participate in this private placement, which we believe should send a strong signal to the market of the enormous potential of the Maracas Menchen Mine.

I would like to sincerely thank all who participated in this placement for their continued support of the Project and the Largo team, and, to reiterate that we will continue to work hard to realize the Company’s full value.

Click here to read the full Largo Resources Ltd. (TSXV:LGO) press release.