Largo Resources Announces Repayment of Brazilian Debt
TORONTO, Aug. 2, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce that, further to its press release of July 17, 2018, it has now repaid in full an aggregate of US$144.1 million in debt owing to the Brazilian Development Bank ("BNDES") and to Largo's syndicate of commercial lenders comprised of Itaú Unibanco S.A., Banco Bradesco S.A. and Banco Votorantim S.A. (collectively, the "Syndicate"), being all amounts owing to the BNDES and the Syndicate (the "Repayment").
The Repayment was a condition of Largo's US$150 million note offering (the "Offering") which was completed on May 22, 2018 (see press release of same date) pursuant to which Largo was provided with 180 days in which to satisfy the escrow release conditions and provide a pledge over all of the shares it holds in its operating subsidiary, Vanadio de Maracás S.A (the "Pledge"). Having completed the Repayment, Largo is now working to discharge the existing security and anticipates having the Pledge in place well in advance of the deadline provided for under the Offering.
Mr. Mark Smith, Largo's President and Chief Executive Officer, commented "We are very pleased to announce that we have repaid all amounts owing to the BNDES and the Syndicate. We would like to thank the BNDES and Syndicate for their strong support during Largo's formative years and in helping to make us the first greenfield mining project ever to be fully financed on the debt side by Brazilian banks. The repayment represents a fundamental step in Largo's development and will allow us to realize the benefits of our recently completed note offering through the improvement in our capital structure, reduction in interest costs and the simplification of our reporting obligations. The completion of the restructuring of our debts along with the on-going strength in V205 pricing (price range of V2O5 for the week ended July 27, 2018 of US$19.00/lb V2O5 to US$19.65/lb V2O5 as reported by the European Metal Bulletin) presents a continuing opportunity for our Company and our shareholders."
About Largo Resources
Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.com.
Cautionary Note:
Readers are cautioned that Metal Bulletin pricing should be considered only as indicative pricing for the global vanadium market, Metal Bulletin pricing does not directly reflect the price realized by the Company for a corresponding period.
Forward-looking Information:
This press release contains forward-looking information under Canadian securities legislation, some of which may be considered "financial outlook" for the purposes of application Canadian securities legislation ("forward-looking statements"). 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 Toronto Stock Exchange (nor its regulatory service provider) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE Largo Resources Ltd.
