Symbol: LGO (TSX.V)
TORONTO, April 27, 2015 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that it has signed a term sheet from its consortium of lenders ("Lenders") to defer its debt amortization schedule and extend the maturities for its construction debt facility ("BNDES Loan") and its export credit facilities (together, the "Facilities") for its Maracas Menchen Mine.
As described in a press release dated February 23, 2015, the restructuring package contemplated an additional one-year grace period on the amortization repayment schedules for the Facilities, a two-year extension of maturity for its export credit facilities and a three-year extension of maturity for the BNDES Loan.
The final restructuring package includes the following:
- An additional one-year grace period on the amortization schedules for the Facilities
- A two-year extension of maturity for its export credit facilities.
- A three-year extension of maturity for the US dollar component (as defined below) of the BNDES facility and no change in the maturity of the R$ component (as defined below) of the BNDES Loan.
The BNDES Loan is denominated in Brazilian reais (R$), but approximately 63% or CDN$111,497 (R$257,676) of the facility is indexed to the U.S. dollar ("U.S. dollar component"), while 37% of the facility is not indexed ("R$ component").
The signed term-sheet provided by Largo will now be submitted for final approval from each of the Lenders' credit committees and will be dependent on the fulfillment of certain conditions precedent by the Company prior to closing. Largo anticipates that the process will be concluded prior to the commencement of the existing amortization period for its Facilities.
Mark Smith, President and Chief Executive Officer for Largo, stated: "We are extremely pleased with the significant advancements we have made in discussions with our Lenders and believe that the signing of the term sheet by Largo is a strong indication that the terms set forth are largely as anticipated and are agreeable to the Company. We remain confident that a finalized agreement will be reached in the very near term."
He continued: "In addition to the strides we have made with regard to restructuring our Facilities, we are further encouraged by the positive trend we are seeing in our production performance at the Maracas Menchen Mine."
Appointment of Mark Smith to Board of Directors:
Additionally, Largo announces the appointment of Mr. Mark Smith, who is already serving as Largo's President and Chief Executive Officer to the Company, to its Board of Directors.
Largo (TSX-V: LGO) is a growing strategic mineral company focused on continuing 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 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".
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 any financings; Largo's development potential and timetable of its operating, development and exploration assets; Largo's ability to raise additional funds necessary; the future price of vanadium, 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". All information contained in this news release, other than statements of current and historical fact, is forward looking information. 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.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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.
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: Darcie Ladd, Manager Corporate Development, 416-861-9406, [email protected]