Largo Acquires an Additional 10% Interest in the Maracas Vanadium
Project
Largo Resources Ltd.
(TSX VENTURE: LGO) ("Largo") is pleased to announce that it has made
a $6 million payment to Metais Nao
Ferrosos Da Bahia Ltda.
("M.N.F.B.") to acquire an additional 10% interest in the Maracas
Vanadium Project located in Bahia State, Brazil. The completion of this
transaction brings Largo's total interest in the project to 90%.
Largo is also pleased
to announce that it has received full commitments for its previously announced
private placement financing of units and subscription receipts for an aggregate
amount of approximately $115 million. Based on these commitments, Largo has
signed an agreement with Itau Brazil for a bridge
loan in the amount of $6 million in order to complete payment to M.N.F.B. in
the interim of the financing's close. The bridge loan facility will bear
interest at 6% per annum and be secured against all of the shares of M.N.F.B.
and Vanadio de Maracas Ltda., such security will be
extinguished immediately upon repayment. Largo will repay the bridge loan in
full from proceeds of the aforementioned private placement of units.
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
a 90% 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, the proposed use of proceeds,
repayment of the bridge loan and receipt of regulatory approvals. 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
www.largoresources.com
Source: Largo Resources Ltd.