Loan with Arias Resource Capital converts at C$1.01 per common share
By Devika Patel
Knoxville, Tenn., March 11 – Largo Resources Ltd. said it arranged a C$12 million 20% convertible, non-revolving, secured term loan facility with funds managed by Arias Resource Capital Management LP.
The six-month loan is convertible into common shares at C$1.01 per share, which is identical to the March 10 closing share price.
Settlement is expected March 13.
The loan will be drawn down over a number of weeks on a bi-weekly basis.
If Largo raises any additional financing, the loan will be subject to mandatory repayment in an amount equal to the net proceeds of that financing transaction.
The Arias funds will be granted a participation option to subscribe for up to C$40 million of securities under any proposed offering of common shares or securities exchangeable or convertible into common shares on or after the date of the loan agreement.
Proceeds will be used for development and general corporate purposes at the company's Vanadio de Maracás Menchen Mine in Brazil.
Largo is a Toronto-based resource development and exploration company.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Convertible, non-revolving, secured term loan facility
|
| Amount: | C$12 million
|
| Maturity: | Six months
|
| Coupon: | 20%
|
| Conversion price: | C$1.01
|
| Warrants: | No
|
| Investor: | Arias Resource Capital Management LP
|
| Announcement date: | March 11
|
| Settlement date: | March 13
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$1.01 at close March 10
|
| Market capitalization: | C$97.56 million
|
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