Non-brokered offering sells units with three-year warrants at C$0.45
By Devika Patel
Knoxville, Tenn., Sept. 12 – Largo Resources Ltd. said it raised C$1.09 million in the second tranche of a C$4.45 million non-brokered private placement of units. The deal raised C$3.36 million on Sept. 7, when the company said it planned to raise C$4.18 million.
The company sold 9,893,997 units of one common share and one half-share warrant at C$0.45 per unit. It sold 7,465,555 units in the initial tranche and 2,428,442 units in the second.
Each whole warrant is exercisable at C$0.65 for three years. The strike price is a 38.1% premium to the Sept. 6 closing share price of C$0.53.
Funds managed by Arias Resource Capital Management LP bought 5.8 million units in the first tranche for C$2.61 million, and president, chief executive officer and director Mark Smith bought 555,555 units in the first tranche for C$250,000.
Proceeds will be used for general corporate and working capital 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$4,452,299
|
| Units: | 9,893,997
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.65
|
| Agent: | Non-brokered
|
| Investors: | Arias Resource Capital Management LP (for C$2.61 million), Mark Smith (for C$250,000)
|
| Settlement dates: | Sept. 7 (for C$3,359,500), Sept. 12 (for about C$1,092,800)
|
| Stock symbol: | Toronto: LGO
|
| Stock price: | C$0.53 at close Sept. 6
|
| Market capitalization: | C$193.95 million
|
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