Third non-brokered tranche to settle Monday, to raise C$1.02 million
By Marisa Wong
Madison, Wis., May 22 – Largo Resources Ltd. said it closed the second tranche of its previously announced C$75 million units offering. The company sold 69,952,639 units for proceeds of C$55,962,114 in the second tranche, according to a press release.
Including the first tranche that closed on May 14, the company has sold a total of 92,730,045 units for total proceeds of C$74,184,039.
Mackie Research Capital Corp. acted as agent on a best-efforts basis for the sale of 2.21 million units in the second tranche for proceeds of C$1,768,000. Other than the 2.21 million units sold through Mackie, the second-tranche units were sold on a non-brokered basis.
Each unit, consisting of one common share and one half-share warrant, was sold at a price of C$0.80.
Each whole warrant is 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.
Funds managed by Arias Resource Capital Management LP (ARC) purchased a total of 48 million units in the second tranche for C$38.4 million. These units were in addition to the 15,312,498 issued to the ARC funds upon closing of the non-brokered first tranche.
Proceeds from the second tranche will be used to develop the Vanadio de Maracas Menchen Mine and related corporate purposes. Proceeds from the first tranche will also used for development of the mine, as well as to repay a C$12 million convertible note facility with Arias Resource Capital Management LP, as previously noted.
The third and final non-brokered tranche is expected to close on Monday. The company expects to raise C$1,015,960, bringing the final aggregate amount to about C$75.3 million.
Largo is a Toronto-based mineral company with projects in Brazil and Canada.
| Issuer: | Largo Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$75.3 million (approximate)
|
| Units: | 94 million (approximate)
|
| 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), non-brokered
|
| Investor: | Arias Resource Capital Management LP (for C$50.65 million)
|
| Pricing date: | May 7
|
| Upsized: | May 13, May 15
|
| Settlement dates: | May 15 for C$18,221,925, May 22 for C$55,962,114, May 26 for C$1,015,960 (expected)
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.77 at close May 6
|
| Market capitalization: | C$95.06 million
|
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