Non-brokered offering sells 107,142,858 units with three-year warrants
By Devika Patel
Knoxville, Tenn., Sept. 29 – Largo Resources Ltd. said it has arranged a C$30 million non-brokered private placement of units.
The company will sell 107,142,858 units of one common share and one warrant at C$0.28 per unit.
Each three-year warrant will be exercisable at C$0.35. The strike price is a 29.63% premium to the Sept. 26 closing share price of C$0.27.
Settlement is expected Oct. 3.
The company expects that C$15 million, or 53,571,429 units, will bought by funds managed by Arias Resource Capital Management LP and C$1.6 million, or 5,714,286 units, will be bought by funds managed by Mackenzie Investments.
Proceeds will be used for the Vanadio de Maracás Menchen Mine and general corporate purposes.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$30 million
|
| Units: | 107,142,858
|
| Price: | C$0.28
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.35
|
| Agent: | Non-brokered
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| Investors: | Arias Resource Capital Management LP (for C$15 million), Mackenzie Investments (for C$1.6 million)
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 3
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.27 at close Sept. 26
|
| Market capitalization: | C$265.39 million
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