Largo Resources announces share consolidation
15 Oct, 2014, 08:00 ET
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TORONTO, Oct. 15, 2014 /CNW/ - Largo Resources Ltd. (TSX-V:LGO) ("Largo" or the "Company") is pleased to announce that the TSX Venture Exchange has approved a consolidation of its common shares (the "Common Shares") on a 10 for 1 basis. The consolidation was approved by the shareholders of the Company at the Company's annual and special shareholders' meeting held on June 26, 2014. The consolidation will take effect on Friday, October 17, 2014. Assuming no other change in the issued capital of the Company, it is expected that, upon completion of this consolidation, Largo will have approximately 109,262,730 Common Shares issued and outstanding, reduced from 1,092,627,305 Common Shares which are currently issued and outstanding.
At the opening of trading on Friday October 17, 2014, the CUSIP and ISIN numbers of the Company will change to 517103601 and CA5171034047 respectively, however, the Company's name and trading symbol will not change.
The Company's outstanding options and warrants will also be adjusted on the same basis (1 for 10) as the Common Shares, with proportionate adjustments being made to exercise prices.
No fractional Common Shares will be issued, and no cash will be paid in lieu of fractional post-consolidation Common Shares. The number of post-consolidation Common Shares to be received by a shareholder will be rounded down to the nearest whole Common Share.
A full description of the consolidation is contained in the Company's management information circular dated May 20, 2014, which has been filed under the Company's profile on SEDAR at
A letter of transmittal will be mailed to shareholders advising that: (i) the consolidation has taken effect; and (ii) shareholders should surrender their existing share certificates (representing pre-consolidation Common Shares) for replacement share certificates (representing post-consolidation Common Shares). Until surrendered, each existing share certificate will be deemed, for all purposes, to represent the number of Common Shares to which the holder thereof is entitled as a result of the consolidation. Copies of the letter of transmittal may be obtained from Equity Financial Trust Company, c/o TMX Equity Transfer Services, the registrar and transfer agent of the Company, by mail, hand or courier at 200 University Avenue, Suite 300, Toronto, Ontario, M5H 4H1, Attn: Corporate Actions. Any questions should be directed to TMX Equity Transfer Services at 1-416-361-0930x205 or 1-866-393-4891 (toll free) or by e-mail to [email protected].
The Company believes that reducing the number of issued and outstanding Common Shares will result in greater investor interest by allowing institutional investors who would, under their investing guidelines, otherwise be precluded from investing at the previous the pre-consolidation Common Share price, to invest in the Company and reducing the volatility in the Common Share price on a percentage basis. The Company also believes that trading costs on a fixed dollar amount at a higher price per Common Share may be lowered for investors relative to the lower price pre-consolidation. The Company expects that the greater interest and reduced transaction costs should ultimately increase and improve the liquidity of the Company's Common Shares.
Largo is a growing strategic mineral company with projects in Brazil and Canada. The immediate goal of the Company is to ramp-up production at its Vanadio de Maracás Menchen Mine.
Largo's Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with commodities giant Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to generate substantial cash-flows.
Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. With a compound annual growth rate of over 6% for the past several years (Roskill, 2013), vanadium is a bourgeoning commodity which lacks opportunities for investment in the wider market place. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to continue this growth over the medium and long term.
Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; 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".
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
SOURCE: Largo Resources Ltd.
For further information: please refer to Largo's website: www.largoresources.com OR Please contact: Darcie Ladd, Business Development Manager, Phone: 416-861-9406, Fax: 416-861-9747, e-mail: [email protected], Web Site: www.largoresources.com
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