Eton Park, Arias Resource and Mackenzie invest in company securities
By Devika Patel
Knoxville, Tenn., April 11 - Largo Resources Ltd. said it concluded a C$114.95 million private placement of units and subscription receipts. Ashmore Cayman SPC No. 2 Ltd., Eton Park Master Fund, Ltd. and EP Cayman, Ltd., Arias Resource Capital Fund LP and Arias Resource Capital Fund II LP and Mackenzie Investments were among the investors for the deal, which priced for C$110 million on March 11.
The company sold 85,714,286 units at C$0.35 apiece and 242,718,844 receipts at the same price. The receipts will convert to units after the company achieves certain milestones.
The units consist of one common share and a third-share warrant, with each whole warrant exercisable at C$0.50 for four years.
The strike price is a 25% premium to the March 10 closing share price of C$0.40. The price per receipt and unit is a 12.5% discount to that price.
Proceeds will be used for the development of Largo's mining project for the exploitation of vanadium and other ores.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one common share and a third-share warrant, subscription receipts convertible into units of one common share and a third-share warrant
|
| Amount: | C$114,951,596
|
| Price: | C$0.35
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.50
|
| Investors: | Ashmore Cayman SPC No. 2 Ltd., Eton Park Master Fund, Ltd. and EP Cayman, Ltd., Arias Resource Capital Fund LP and Arias Resource Capital Fund II LP and Mackenzie Investments
|
| Pricing date: | March 11
|
| Settlement date: | April 11
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.40 at close March 10
|
| Market capitalization: | C$135 million
|
|
|
| Units
|
| Amount: | C$30 million
|
| Units: | 85,714,286
|
| Warrants: | One third-share warrant per unit
|
|
|
| Receipts
|
| Amount: | C$84,951,596
|
| Receipts: | 242,718,844
|
| Warrants: | One third-share warrant per unit upon conversion
|
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