Non-brokered offering sells 222,857,143 units with five-year warrants
By Devika Patel
Knoxville, Tenn., Jan. 29 – Largo Resources Ltd. said it raised C$13.29 million in the first tranche of a C$39 million non-brokered private placement of units. The deal priced on Jan. 19.
The company is selling 222,857,143 units of one common share and one half-share warrant at C$0.175 per unit. It sold 75,919,898 units in the initial tranche.
Each whole warrant will be exercisable at C$0.29 for five years. The strike price is a 38.1% premium to the Jan. 18 closing share price of C$0.21.
Funds managed by Arias Resource Capital Management LP bought 62,176,283 units in the first tranche for C$10,880,850, and president, chief executive officer and director Mark Smith bought 2.5 million units in the first tranche for C$437,500.
Settlement of the remaining units is expected Feb. 4.
Proceeds will be used for working capital at the Maracas Menchen Mine, which is a condition of restructuring the company’s credit facilities with a consortium of Brazilian lenders, and for general corporate and working capital purposes.
The company also said it has signed a binding term sheet with its consortium of commercial banks in Brazil for a new debt facility and to restructure its export credit facilities for the Maracás Menchen Mine.
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$39 million
|
| Units: | 222,857,143
|
| Price: | C$0.175
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.29
|
| Agent: | Non-brokered
|
| Investors: | Arias Resource Capital Management LP (for C$10,880,850), Mark Smith (for C$437,500)
|
| Pricing date: | Jan. 19
|
| Settlement date: | Jan. 29 (for C$13,285,982), Feb. 4
|
| Stock symbol: | TSX Venture: LGO
|
| Stock price: | C$0.21 at close Jan. 18
|
| Market capitalization: | C$26.42 million
|
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