Largo Secures Land Rights for Mining and Development at Its Maracas
Project, Bahia Brazil
TORONTO,
ONTARIO -- (MARKET WIRE) -- 06/02/11 -- Largo Resources Ltd. (TSX VENTURE: LGO)
("Largo" or the "Company") is pleased to announce that it
has signed an agreement to secure the necessary land rights to develop and
construct the processing facility at its Maracas Project in Bahia, Brazil.
Largo previously held exploration rights for this area of the property and has
now finalized an agreement for mining and construction on the property.
Mark
Brennan, President and Chief Executive Officer of Largo stated: "This is a
major step in the development of the Maracas Vanadium Project. This agreement
guarantees that we can submit the Installation License application which will
provide us with final approval to construct and develop on the property. Our
team in Brazil has been working diligently with the authorities in Brazil over
the past months to finalize the documentation required for this application.
With documentation nearly complete and this final agreement executed, we expect
that the Installation License will be filed imminently and that approval should
be received within our projected deadlines. Concurrently, the front end
engineering design is progressing rapidly and we are looking forward to
continued development on the engineering process over the next few
months."
Details
of Land Agreement:
The
land rights are being acquired by the Company through a series of agreements
which will allow the Company to gain access to the Maracas Property to allow
for the mining, research and processing activities as set forth by the mining
rights attached to the Maracas Property. In consideration for the property
acquisition, the Company will pay a cash payment of R$275,000 to Banco
Economico S/A - In Voluntary Liquidation ("BESA") pursuant to an
option agreement, a cash payment of R$5,250,000 to be paid in twelve monthly
instalments to Economico Agro Pastoril e industrial pursuant to a leasing
agreement, and a payment of US$9,000,000 paid in instalments over forty months
for royalties, mining easements and other uses to BESA pursuant to a mining
easement.
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 July, 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
acquisition, the receipt of the installation license and the Company's
expectations for the Maracas project and the expected effect of the project on
the Company's performance. 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.
Darcie Ladd
Manager Business Development
416-861-5938
dladd@largoresources.com
www.largoresources.com
Source:
Largo Resources Ltd.