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Largo Resources Ltd. (TSXV:LGO) announced that Vanadio de Maracas Ltda., a 100% owned Brazilian subsidiary of Largo, has received binding commitments from a consortium of commercial banks for guarantees in the principal amount of up to US$150 million.
As quoted in the press release:
Vanadio de Maracas Ltda., a 100% owned Brazilian subsidiary of Largo, has received binding commitments from a consortium of commercial banks led by Banco Itaú BBA S.A. (“Itaú BBA”), a subsidiary of Itaú Unibanco Group and one of Brazil’s leading banks, for guarantees of a Brazilian Development Bank (“BNDES”) loan facility in the principal amount of up to US$150 million for the development of its Maracas Vanadium Project in Bahia State, Brazil.
The facility has an eight year term with a two year grace period for the repayment of principal. The interest rate with respect to the financing from BNDES, is yet to be determined but will be calculated based on a combination of the long term interest rate used by BNDES and the currency basket of the average cost of BNDES’s long term own debt, such amounts to be determined by BNDES.
Largo Resources President and Chief Executive Officer, Mark Brennan, said:
“We cannot understate our excitement at having received the commitment by the commercial banks to guarantee the BNDES facility.” He added, “Following the issuance of the Enquadramento by the BNDES (see press release October 31, 2011) and the Installation License (see press release October 24, 2011) we are now in a position to make the Maracas project a reality.”
Click here to read the Largo Resources Ltd. (TSXV:LGO) press release
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