Largo Announces Increase to Previously Announced Equity Offering to $115
Million
Largo Resources Ltd.
(TSX VENTURE: LGO) ("Largo") is pleased to announce an increase to
its previously announced private placement equity offering of CDN $110 million
to up to approximately CDN $115 million. The CDN $5 million increase will be
generated through the issuance of additional subscription receipts
("Subscription Receipts") at a price of $0.35 per Subscription
Receipt bringing the expected total aggregate gross proceeds from Subscription
Receipts to approximately $85,000,000. Upon satisfaction of certain escrow
release conditions, the Subscription Receipts will be automatically
exercisable, with no further action on the part of the holder, into Units (as
defined below).
The first portion of
the private placement will remain unchanged and will consist of the issuance of
units (each a "Unit") at a price of $0.35 per Unit aggregate proceeds
to Largo of $30,000,000 with each Unit consisting of one common share and
one-third of one common share purchase warrant (a "Warrant") where
each whole Warrant will entitle the holder to acquire one further common share
at a price of $0.50 for a period of 48 months from the date of issue.
About Largo
Largo is a
Canadian-based mineral resource exploration and development company focused on
creating a world leading strategic metals company. The Company currently holds
an 80% interest in the Maracas 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 70% interest in the
Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory,
Canada. The immediate goal of the Company is to develop the Maracas Vanadium
Project by Q1 2013 and begin production of WO3 concentrate from the
reprocessing of tungsten tailings from Currais Novos by June, 2011. Largo has a very skilled management
team both in Canada and Brazil with the 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
Disclaimer
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
Contacts:
Largo Resources Ltd.
Mark Brennan
President
&
CEO
(416) 861-5886
mbrennan@largoresources.com
Largo Resources Ltd.
Darcie Ladd
Manager Business
Development
416-861-5938
dladd@largoresources.com
Source: Largo
Resources Ltd.