Symbol: LGO (TSX.V)
TORONTO, Nov. 29, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an updated budget estimate ("Budget" or
"CAPEX") for mechanical completion of its Maracas Vanadium Project (the
"Project") in Bahia, Brazil.
The current budget forecast for mechanical completion of the project is
USD $248 million, which includes the full utilization of a USD $7
million contingency provision that is currently unallocated, versus an
initial budget of USD $230 million (see press release September 13,
This forecasted variance of USD $18 million is offset by USD $30 million
in additional funding available from the following:
USD $17 million equity currently expected to close in mid-December 2013
as set out in a press release dated November 29, 2013.
USD $13 million in additional funding under the Project's lending
facilities due to depreciation of the Brazilian Real.
As such, the Company expects that it will have sufficient funds to
complete the Project's remaining CAPEX.
The appreciation in the Maracas Project's budget (+7.8%) is primarily
the consequence of delays to the Project's initial completion date
resulting from manufacturing issues and the subsequent delay in
delivery by a supplier of 4 rollers for the kiln and cooler (see press
release August 21, 2013). Some of the costs associated with this delay
include: additional work hours and incidentals for electro-mechanical
contractors and the postponement of anticipated revenue.
Mark Brennan, President and Chief Executive Officer for Largo, stated:
"I am extremely pleased with progress at the Maracas Project to date.
Although we are disappointed that the delay in the delivery of the kiln
cooler rollers has caused a slight increase to our projected budget, I
must commend my team for their diligence in maintaining such a close
track to the budget despite these circumstances." He added, "It is
quite uncommon for projects of this size and scale to be so close to
the initial projected budget at this advanced stage of development. We
are confident that we will complete construction in Q1, and expect that
we will also will continue to track very close to this revised budget
for which we are sufficiently funded."
Largo is a growing strategic mineral company with projects in Brazil and
Canada. The immediate goal of the Company is to complete the
development of its Maracás Vanadium Project which is expected in the
first quarter of 2014. Largo also has interests in a portfolio of other
projects, including: a 100% interest in the Currais Novos Tungsten
Tailings Project in Brazil, which the Company continues to develop; a
100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in
Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum
property in the Yukon Territory, Canada.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
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This press release contains forward-looking information under Canadian
securities legislation. forward-looking information includes, but is
not limited to, statements with respect to completion of the private
placement, Largo's development potential and timetable of the Maracás
and Northern Dancer projects; Largo's ability to raise additional funds
necessary; the future price of tungsten and molybdenum; the estimation
of mineral reserves and mineral resources; conclusions of economic
evaluation; the realization of mineral reserve estimates; the timing
and amount of estimated future production, development and exploration;
costs of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental risks. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Largo to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to those risks described in the annual
information form of Largo and in its public documents filed on SEDAR
from time to time. Although management of Largo has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Largo does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws.
Readers should also review the risks and uncertainties sections of
Largo's annual and interim MD&As.
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SOURCE: Largo Resources Ltd.
For further information:
Manager Business Development
President & CEO