Best-efforts offering sells 62.5 million units with one-year warrants
By Devika Patel
Knoxville, Tenn., May 13 – Largo Resources Ltd. said it will now raise C$70 million in its private placement of units. Mackie Research Capital Corp. is the lead agent and bookrunner for the C$1.4 million brokered portion of the deal, which priced for C$50 million with a C$7.5 million greenshoe on May 7. The offering will now have a non-brokered component, which will cover C$68.6 million of proceeds.
The company will now sell 87.5 million units of one common share and one half-share warrant at C$0.80 per unit. The brokered portion will be conducted on a best-efforts basis.
Each whole warrant will be exercisable at C$1.50 for one year. The strike price is a 94.81% premium to the May 6 closing share price of C$0.77.
Funds managed by Arias Resource Capital Management LP are expected to buy 63,312,500 units for C$50.65 million.
Settlement of the first tranche is expected Thursday.
A minimum of $35 million must be raised to restructure the company's Maracas Menchen Mine debt facilities.
Proceeds will be used for development of the Maracas Menchen Mine and general corporate 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$70 million
|
| Units: | 87.5 million
|
| Price: | C$0.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$1.50
|
| Agent: | Mackie Research Capital Corp. (lead, for C$1.4 million), non-brokered (for C$68.6 million)
|
| Investor: | Arias Resource Capital Management LP (for C$50.65 million)
|
| Pricing date: | May 7
|
| Upsized: | May 13
|
| Settlement date: | May 14
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.77 at close May 6
|
| Market capitalization: | C$90.69 million
|
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