Best-efforts offering sells 93.75 million units with one-year warrants
By Devika Patel
Knoxville, Tenn., May 28 – Largo Resources Ltd. said it raised C$1.02 million in the third and final tranche of a C$75.2 million private placement of units. The deal raised C$18.22 million on May 15 and C$55.96 million on May 22.
Mackie Research Capital Corp. was the lead agent and bookrunner for the C$1.68 million brokered portion of the deal, which priced for C$50 million with a C$7.5 million greenshoe on May 7 and was increased to C$75 million on May 15. The offering was amended to include a non-brokered component and was increased to C$70 million on May 13. The brokered portion was conducted on a best-efforts basis.
The company sold 93,999,996 units of one common share and one half-share warrant at C$0.80 per unit. It sold 22,777,406 units in the initial tranche on a non-brokered basis, with 69,952,639 shares sold in the second tranche. The agents sold 2.21 million units in the second tranche and 67,742,639 shares in the tranche were sold on a non-brokered basis. Largo sold 1,269,951 shares in the non-brokered third tranche.
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 Arias Resource Capital Management LP bought 15,312,498 units in the first tranche.
Proceeds will be used for development of the Maracas Menchen Mine and for general corporate purposes. From the first-tranche proceeds, the company used C$12.25 million to repay the company’s C$12 million convertible note facility with Arias Resource Capital Management LP.
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$75.2 million
|
| Units: | 93,999,996
|
| 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, for C$1.68 million), non-brokered (for C$73.2 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 28 (for C$1,015,960)
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.77 at close May 6
|
| Market capitalization: | C$95.06 million
|
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