Non-brokered offering sells 222,857,143 units with five-year warrants
By Devika Patel
Knoxville, Tenn., Jan. 19 – Largo Resources Ltd. said it has arranged a C$39 million non-brokered private placement of units.
The company will sell 222,857,143 units of one common share and one half-share warrant at C$0.175 per unit.
Each whole warrant will be exercisable at C$0.29 for five years. The strike price is a 38.1% premium to the Jan. 18 closing share price of C$0.21.
Settlement is expected Jan. 22.
Proceeds will be used for working capital at the Maracas Menchen Mine, which is a condition of restructuring the company’s credit facilities with a consortium of Brazilian lenders, and for general corporate and 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$39 million
|
| Units: | 222,857,143
|
| Price: | C$0.175
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.29
|
| Agent: | Non-brokered
|
| Pricing date: | Jan. 19
|
| Settlement date: | Jan. 22
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.21 at close Jan. 18
|
| Market capitalization: | C$45.73 million
|
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