/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
TORONTO, April 3 /CNW/ - Largo Resources Ltd. (LGO:TSX Venture Exchange)
(the "Company") is pleased to announce that it has entered into an agreement
to raise up to $5,005,000 on a commercially reasonable efforts basis by way of
a brokered private placement with a syndicate of agents led by Pacific
International Securities Inc. and including PowerOne Capital Markets Limited
and Fraser Mackenzie Limited (the "Agents"). The offering is for up to
9,100,000 units (the "Units") of the Company at a price of $0.55 per Unit. The
Agents have been granted an option to offer for sale up to an additional
9,100,000 Units, exercisable until the closing date.
Each Unit will consist of one common share and one half of one
transferable common share purchase warrant (each whole warrant, a "Warrant").
Each Warrant will entitle the holder to purchase one additional common share
of the Company at a price of $0.80, for a period of 18 months following the
The Agents will receive a commission of 6.0% of the gross proceeds raised
in this private placement, which they may elect to receive in cash or, in
whole or in part, in units of the Company on the same terms as the Units of
the offering. The Agents will also receive compensation options (the
"Compensation Options") equal to 6.0% of the number of Units issued in
connection with the offering. Each Compensation Option will entitle the Agents
to purchase one additional common share of the Company at a price of $0.65 per
common share for a period of 18 months following the closing date.
The net proceeds raised in the offering will be used to further explore
the Company's Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the
Maracas Vanadium-PGM deposit in Brazil.
The financing is subject to receipt of all necessary regulatory and TSX
Venture Exchange approvals.
About Largo Resources
Largo Resources is a Canadian natural resource development and
exploration company with two advanced stage projects: the Northern Dancer
Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit
in Brazil. Largo also has a large (60,000 hectare) land position and
prospective gold exploration properties in Ecuador; one of which, the
5,000 hectare Macuchi property, is under option to Aur Resources Inc. The
company is listed on the TSX Venture Exchange under the symbol LGO. For more
information please refer to Largo's website: www.largoresources.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
For further information:
For further information: Contact: Largo Resources Ltd., Mark Brennan,
President and CEO, Tel: (416) 861-5886, Fax: (416) 861-8165, Email: