By Devika Patel
Knoxville, Tenn., May 27 - Largo Resources Ltd. announced it has negotiated a C$10 million private placement of units. The deal was announced May 16.
The company will sell 20 million units at C$0.50 each. The units consist of one common share and one half-share warrant with each whole warrant exercisable at C$0.75 for one year.
Cormark Securities Inc. is the lead agent of a syndicate that includes Fraser Mackenzie Ltd., Macquarie Capital Markets Canada Ltd. and Clarus Securities Inc. The agents have a greenshoe for 3 million units, or C$1.5 million.
Settlement is expected June 12.
Proceeds will be used for repayment of a convertible note facility and for working capital purposes.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million (3 million units)
|
| Units: | 20 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.75
|
| Agents: | Cormark Securities Inc. (lead), Fraser Mackenzie Ltd., Macquarie Capital Markets Canada Ltd., Clarus Securities Inc.
|
| Announcement date: | May 16
|
| Pricing date: | May 26
|
| Settlement date: | June 12
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.60 at close May 26
|
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