Best-efforts offering sells 62.5 million units with one-year warrants
By Devika Patel
Knoxville, Tenn., May 7 – Largo Resources Ltd. said it has arranged a C$50 million private placement of units with a 15% greenshoe of C$7.5 million. Mackie Research Capital Corp. is the lead agent and bookrunner.
The company will sell 62.5 million units of one common share and one half-share warrant at C$0.80 per unit on a best-efforts basis.
Each whole warrant will be exercisable at C$1.50 for one year. The strike price is a 94.81% premium to the May 6 closing share price of C$0.77.
Settlement is expected the week of May 15.
A minimum of $35 million must be raised to restructure the company's Maracas Menchen Mine debt facilities.
Proceeds will be used for development of the Maracas 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 half-share warrant
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million, 9,375,000 units
|
| Units: | 62.5 million
|
| Price: | C$0.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$1.50
|
| Agent: | Mackie Research Capital Corp. (lead)
|
| Pricing date: | May 7
|
| Settlement date: | The week of May 15
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.77 at close May 6
|
| Market capitalization: | C$91.78 million
|
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