By Devika Patel
Knoxville, Tenn., March 6 - Largo Resources Ltd. said it raised another C$1 million in a completed C$3 million private placement of units.
On Feb. 7, the company took in C$2 million in the first tranche of the deal, which priced Jan. 25.
In the first tranche, Largo sold 3,636,363 flow-through units at C$0.55 each to MineralFields Group. It sold 1,818,181 units at that price in this tranche. The company sold a total of 5,454,544 units.
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 paid First Canadian Securities a 6.5% cash finder's fee and 381,817 compensation options. For the first tranche, Largo issued 254,545 options. It issued 127,272 options in this tranche.
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: | 5,454,544
|
| Price: | C$0.55
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.80
|
| Investor: | MineralFields Group
|
| Fees: | 6.5%, 381,817 compensation options
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 7 (for C$2 million), March 6 (for C$1 million)
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.41 at close Jan. 24
|
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