Symbol: LGO (TSX.V)
TORONTO, March 12, 2012 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that, further to its press release of March 8, 2012, the first tranche of funds in an amount equivalent to US$12 million in Reais from the previously announced CDN$30 million Bridge Loan (the "Bridge Loan") has been disbursed to the Company. Concurrently, Largo announces the closing, today, of the previously announced equity offering (the "Offering") for aggregate gross proceeds to the Company of CDN$13,999,999.86. All of the funds from the Bridge Loan and $11,000,000 of the funds from the Offering will be deployed immediately to advance development at the Maracas Vanadium Project where construction is scheduled to commence by the end of March 2012. The remaining funds from the Offering will be used for general corporate purposes.
In conjunction with the funding of the first tranche of the above stated Bridge Loan, effective March 9, 2012, 99.9% of the issued and outstanding subscription receipts of the Company (being 211,079,131 subscription receipts) have been amended (the "Amendments") to, among other things, extend their expiry time to December 31, 2012, all on the terms more fully set out Largo's March 8, 2012 press release.
All securities issued are subject to a four month statutory hold commencing from the date of issuance. The Offering and the Amendments are subject to TSX Venture Exchange acceptance of requisite regulatory filings.
Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 90% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by the end of Q2 2013 and continue to produce WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil, are confident in their ability to advance these projects.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
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 Maracas 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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Manager Business Development