Largo Resources (TSX:LGO) has announced that the syndicate of Brazilian commercial lenders under its existing debt facilities have agreed to temporarily waive the requirement that Largo inject a further $5 million in working capital into its operating subsidiary.
As quoted in the press release:
In connection with the granting of this temporary Waiver, the Lenders and the Company are in discussions to use some of the operating subsidiary’s cash flow from operations to fund certain payment obligations to the Lenders which had previously been delayed.
Mark Smith, President and Chief Executive Officer for Largo, stated: “The continued generation of cash by operations and the strengthening of the vanadium market generally, have resulted in the Lenders agreeing to grant a waiver from further equity injections at this time. This is a great result for Largo and we look forward to continuing to work with the Lenders to ensure the success of the Company.”