Eton Park, Arias Resource and Mackenzie invest in company securities
By Devika Patel
Knoxville, Tenn., March 11 - Largo Resources Ltd. said it plans a private placement of units and subscription receipts. Eton Park Capital Management, LP, Arias Resource Capital Management LP and Mackenzie Investments are among the investors for the C$110 million deal.
The company will sell C$30 million of units at C$0.35 apiece and C$80 million of receipts at the same price. The receipts will convert to units after the company achieves certain milestones.
The units consist of one common share and one-third warrant, with each whole warrant exercisable at C$0.50 for four years.
The strike price is a 25% premium to the March 10 closing share price of C$0.40. The price per receipt and unit is a 12.5% discount to that price.
Proceeds will be used for the development of Largo's mining project for the exploitation of vanadium and other ores.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one common share and a third-share warrant, subscription receipts convertible into units of one common share and one-third warrant
|
| Amount: | C$110 million
|
| Price: | C$0.35
|
| Warrants: | One-third warrant per unit, one-third warrant per unit upon conversion
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.50
|
| Investors: | Eton Park Capital Management, LP, Arias Resource Capital Management LP and Mackenzie Investments
|
| Pricing date: | March 11
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.40 at close March 10
|
| Market capitalization: | C$120.49 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
