Largo Resources Announces C$10 Million Marketed Private Placement Financing and Acquisition of Remaining 10% Minority Interest in Maracas Vanadium Project, Brazil
Published : October 11, 2012
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TORONTO, ONTARIO--(Marketwire - Oct. 11, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES

Largo Resources Ltd. (News - Market indicators) ("Largo" or the "Company") is pleased to announce a C$10 million overnight marketed private placement of common shares (the "Offering") at a price of C$0.22 per common share resulting in the issuance of up to 45,454,546 common shares. The Offering will be conducted on a best efforts basis by way of private placement by a syndicate of agents led by RBC Capital Markets and including Scotiabank and Byron Capital Markets as co-leads (collectively the "Agents").

The Company anticipates that C$9.8 million of the Offering, or an aggregate of 44,545,455 common shares, will be purchased by funds managed by Arias Resource Capital Management LP (the "ARC Funds") and Mackenzie Investments ("Mackenzie"). The ARC Funds and Mackenzie are insiders of the Company by virtue of their current ownership of approximately 16.8% and 15.9%, respectively, of the Company's common shares. Assuming the Offering is fully sold, it is expected that after completion of the Offering, the ARC Funds and Mackenzie will own 19.98% and 16.10%, respectively, of the Company's then issued and outstanding common shares.

Out of the net proceeds of the Offering US$8 million will be used to acquire the remaining 10% minority interest in Companhia de Maracás, which indirectly holds the Maracás project located in Brazil, that the Company does not already own and for general corporate purposes. The Agents will be paid a fee of 6% of the aggregate gross proceeds raised in excess of $4,000,000.

The Offering is expected to close on or about October 25, 2012 and is subject to certain customary closing conditions, including but not limited to receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. All common shares of the Company issued in connection with the Offering will be subject to a hold period in Canada of four months and one day from the date of issuance.

The Offering was considered and approved by the board of directors of the Company. J. Alberto Arias, a director of Largo who is also the sole director of each of the general partners of the ARC Funds and indirectly controls Arias Resource Capital Management LP, declared a conflict and recused himself from voting on the Offering. There was no materially contrary view or abstention by any director approving the Offering.

Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the proposed purchase by the ARC Funds and Mackenzie will be a "related party transaction". The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as neither the fair market value of the securities received by the ARC Funds and Mackenzie nor the proceeds for such securities received by the Company exceeds 25% of the Company's market capitalization as calculated in accordance with MI 61-101.

Largo Resources Ltd. is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 90% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by the end of Q4, 2013 and continue to produce WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil are confident in their ability to advance these projects.

Largo is listed on the TSX Venture Exchange under the symbol "LGO".

For more information please refer to Largo's website: www.largoresources.com

This press release contains forward-looking information under Canadian securities legislation. forward-looking information includes, but is not limited to, statements with respect to completion of the private placement, Largo's development potential and timetable of the Maracas and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Largo Resources Ltd.
Darcie Ladd
Business Development Manager
416-861-9406
416-861-9747 (FAX)
dladd@largoresources.com
www.largoresources.com
Data and Statistics for these countries : Brazil | Canada | All
Gold and Silver Prices for these countries : Brazil | Canada | All

Largo Resources Ltd

DEVELOPMENT STAGE
CODE : LGO.V
ISIN : CA5171031076
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Largo Res. is a gold and copper exploration company based in Canada.

Largo Res. develops gold, copper and tungsten in Brazil, and holds various exploration projects in Canada.

Its main asset in development is CURRIAS NOVO in Brazil and its main exploration properties are MACUCHI in Ecuador, MARACAS in Brazil and NORTHERN DANCER in Canada.

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Financings of Largo Resources Ltd
7/3/2012Largo Closes BNDES Debt Financing Facility and Converts Subs...
3/9/2012Largo Provides Update on BNDES Debt Financing Facility
4/12/2011(Maracas)Largo Closes Financing Intended to Fund Development of Its M...
3/29/2011Largo Announces Increase to Previously Announced Equity Offe...
3/15/2011Announces Plans for $110 Million Equity Financing
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Nominations of Largo Resources Ltd
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11/11/2013Largo appoints Mr. Michael Mutchler to the position of Chief...
9/4/2013Largo appoints Mr. Ernest M. Cleave to the position of Chief...
6/29/2012Largo announces the election of David Brace, Wayne Egan and ...
Project news of Largo Resources Ltd
7/5/2016- Largo Achieves a New Monthly Production Record of 801 Tonn...
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12/3/2013Construction Target Reached
11/30/2013(Maracas)Largo provides update on Capex Budget for the Maracas Vanadi...
11/20/2013Construction Targets Reached
10/23/2013Largo Resources - Energized and Commissioning
9/10/2013Another Construction Target Reached
8/21/2013Largo Resources provides operational update
8/8/2013(Maracas)Equipment Arriving at Maracas
7/26/2013Arrival of Equipment at Port
7/25/2013Another Construction Target Reached
5/23/2013Another Construction Target Reached
4/8/2013Project Map and Process Flow
1/23/2013(Maracas)Largo to commence electrical-mechanical assembly at its Mara...
1/21/2013/R E P E A T -- Largo announces positive preliminary economi...
11/2/2012(Maracas)New Videos of Construction at the Maracas Vanadium Project
9/21/2012(Maracas)New Video from the Maracas Vanadium Project
9/13/2012(Maracas)Largo announces results of a technical report for its Maraca...
7/31/2012(Maracas)Largo provides update on development at its Maracas Vanadium...
6/4/2012(Maracas)Largo commences full construction activities at its Brazil M...
5/28/2012(Maracas)Largo mobilizing for groundbreaking at its Maracas Vanadium ...
4/2/2012Largo completes clearing of site to begin civil construction...
7/21/2011Largo Starts Processing Tailing Materials at Its Currais Nov...
6/15/2011(Northern Dancer)Largo Announces Purchase of Final30% Option on the Northern ...
6/2/2011(Maracas)Largo Secures Land Rights for Mini =?ISO-8859-1?Q?ng=20and=2...
5/17/2011(Maracas)Largo Commences Drilling at Its Ma =?ISO-8859-1?Q?racas=20Va...
4/27/2011(Maracas)Largo to Initiate Exploration Drill =?ISO-8859-1?Q?=20Progra...
4/19/2011(Maracas)Engages Promon to Engineer and Build Maracas Vanadium Projec...
4/5/2011(Currias Novo)Provides Update on Production Schedule for Currais Novos Tun...
3/29/2011(Maracas)Largo Acquires an Additional 10% Interest in the Maracas Van...
3/15/2011(Northern Dancer)Largo Announces Extension of Option to Purchase Final 30% of...
2/28/2011(Northern Dancer)Announces Positive Preliminary Economic Assessment for North...
1/25/2011(Currias Novo)Signs LOI for Four New Properties in the Currais Novos Tungs...
Corporate news of Largo Resources Ltd
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4/11/2015ARC Funds Advance Additional CDN$2 Million under Largo Bridg...
3/27/2015ARC Funds Advance Additional CDN$3 Million under Largo Bridg...
3/20/2015Largo announces closing of convertible bridge loan facility ...
3/17/2015/C O R R E C T I O N from Source -- ARIAS RESOURCE CAPITAL F...
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3/11/2015Largo Provides Corporate Update and Announces New Chief Exec...
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3/9/2015Largo Provides Corporate Update and Announces New Chief Exec...
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1/28/2014Latest Pictures
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11/13/2013Vanadium Market Update & Latest Pictures
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10/29/2013Latest Pictures
10/23/2013(Maracas)Maracas Energized and Commissioning
10/21/2013Largo completes construction of electrical power line and co
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10/3/2013Largo Provides Operational Update
9/30/2013(Maracas)2013 - Largo wins Best Mining Finance Award from Latin Finan...
9/18/2013(Maracas)Panoramic View of Maracas Construction
9/16/2013Latest Pictures
9/6/2013A New Look For Largo
9/4/2013Arrival of Shells for Kiln
8/22/2013Message from Management & Latest Pictures
8/7/2013Latest Pictures
7/23/2013Latest Pictures
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4/16/2013Interview with Les Ford, Largo's Resident Vanadium Expert
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4/4/2013Latest Pictures
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1/10/2013Vanadium Market Update
10/30/2012Largo Provides Operational Update
10/11/2012Announces C$10 Million Marketed Private Placement Financing ...
10/4/2012Largo Pours First Concrete for Plant Foundations at Its Mara...
9/26/2012(Maracas)Largo to investigate expansion of production at its Maracas ...
9/17/2012(Maracas)Largo announces substantial increase to its mineral resource...
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7/3/2012IIROC Trading Resumption - LGO
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1/9/2012Largo Resources Appoints Ken Kuchling as Vice President of E...
12/14/2011Largo Resources Announces First Commercial Shipment From Cur...
12/9/2011Largo Announces Early Release of $11 Million of Escrow Share...
10/24/2011(Maracas)Largo Resources Receives Installation License/Construction L...
10/13/2011Largo Resources Begins Exploration on New Project Areas Near...
9/14/2011(Maracas)Largo Continues to Report High Grade Drill Results from Its ...
8/22/2011(Maracas)Largo Announces High Grade Drill Results from Its Maracas Pr...
7/6/2011(Northern Dancer)Largo Begins Drill Program for Current Prefeasibility Study ...
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6/9/2011(Maracas)Largo Submits Application for Construction License for the M...
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TSX-V (LGO.V)Other OTC (LGORF)
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