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Largo Resources Ltd. (TSX VENTURE:LGO - News;
"Largo" or the "Company") announced today that it has
signed a Letter of Intent (L.O.I.) to secure the acquisition of four new
attractive tungsten exploration properties, namely Acaua,
Cafuca, Galo and Recanto totalling 4,595
hectares near its Currais Novos
Tungsten Project, in Rio Grande de Norte, Brazil.
The properties have interesting exploration
potential and provide an opportunity to increase Largo's tungsten reserve
base within the Currais Novos
District. Acaua is a promising target with good
underground showings. Cafuca is an old mine that
was worked by Anglo American in the 1980s. Galo is immediately
adjacent to Cafuca and has the down dip
continuation of the mineralization mined on Cafuca.
Recanto is a good early stage exploration target in
the same belt.
All of the aforementioned properties are
in close proximity to the Currais Novos project (see figure 1 below) within the Currais Novos District. Largo
expects to sign a definitive agreement by the end of February, 2011, after
which, exploration on the properties will commence alongside the ongoing
development at Currais Novos.
Prior to the announcement of the
completion of a Preliminary Economic Assessment (P.E.A.) for the existing
properties at Currais Novos
(see press release dated December 14, 2010) installation licences
were granted, and an implementation and operational team was assembled.
Construction activities at Currais Novos have commenced
and are continuing as scheduled for the recovery of tungsten from mine
tailings with initial production set to begin by July 2011.
Closing of Currais
Novos Financing Agreement
Largo announces that it has entered into
a financing arrangement whereby certain advances may be made in various
amounts and tranches up to an aggregate amount of $4.0 million (the
"Facility"). An initial advance under the Facility has been made to
Largo and future advances under the Facility are contingent upon Largo's
completion of certain conditions precedent thereunder.
The amounts owed under the Facility may be repaid in common shares of Largo
based on the market price at the date of such request, subject at that time
to receipt of all required regulatory approvals for the issuance of common
shares in exchange for the cancellation of any portion of the Facility. Largo
intends to use the proceeds from the Facility to acquire and put into
production the Currais Novos
property in Brazil.
Largo further announces that it has also
entered into a definitive supply agreement in respect of tungsten to be
produced from the Currais Novos
property, with initial shipments anticipated on or about July, 2011.
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, 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 July,
2011. Largo has a very skilled management team both in Canada and Brazil with
the ability to advance these projects.
Largo is a publicly listed company on
the TSX Venture Exchange under the symbol LGO. For more information please
refer to Largo's website: www.largoresources.com.
Mr. Tim Mann, an officer of the Company
and a Qualified Person as defined under National Instrument 43-101, has
reviewed the scientific and technical disclosure in this press release.
Cautionary Note
This press release contains
forward-looking information under Canadian securities legislation.
Forward-looking information includes, but is not limited to, information with
respect to the prospects of the projects ; 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; ability to obtain necessary funding; currency exchange
rates; government regulation of mining operations; and environmental risks.
Generally, forward-looking information 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 information is based on the opinions and estimates of
management as of the date such statements are made. Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of Largo to be materially different from those expressed or
implied by such forward-looking information, including but not limited to
those risks described in the annual information form of the Company. Although
management of Largo has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such Information.
Accordingly, readers should not place undue reliance on forward-looking
information. Largo does not undertake to update any forward-looking
information, except in accordance with applicable securities laws.
To view Figure 1: Location Map -
Tungsten Projects, please visit the following link: http://media3.marketwire.com/docs/lgo_map.pdf.
NEITHER THE TSX VENTURE EXCHANGE (NOR
ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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