By Devika Patel
Knoxville, Tenn., Feb. 7 - Largo Resources Ltd. said it raised C$2 million in the first tranche of a C$3 million private placement of units that priced Jan. 25.
In this tranche, Largo sold 3,636,363 flow-through units at C$0.55 each to MineralFields Group. The company plans to sell a total of 5,454,545 units at that price to MineralFields.
The units consist of one flow-through share and one half-share warrant with each whole warrant exercisable at C$0.80 for 18 months.
Largo will pay First Canadian Securities a 6.5% cash finder's fee and 381,818 compensation options. For this tranche, Largo issued 254,545 options. Each compensation option is exercisable into units at C$0.55 for 18 months. Each compensation unit will be comprised of one non-flow-through common share and one half-share warrant.
Proceeds will be used for exploration.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one flow-through share and one half-share warrant
|
| Amount: | C$3 million
|
| Units: | 5,454,545
|
| Price: | C$0.55
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.80
|
| Investor: | MineralFields Group
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 7 (for C$2 million)
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.41 at close Jan. 24
|
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