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Largo Resources (TSXV: LGO) Closes $30 million non-brokered private placement

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Largo Resources, symbol LGO on the TSX Venture Exchange has closed its $30 million non-brokered private placement. The offering of approximately 107.2 million units at $0.28 per unit, consisted of one common share and one common share purchase warrant. The warrants have an exercise price of $0.35 for three years.

Additional Information:

Company: Largo Resources
Website: http://www.largoresources.com/
Stock Symbol: TSXV: LGO
Date Published: Oct 8, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch media

Largo Resources, symbol LGO on the TSX Venture Exchange has closed its $30 million non-brokered private placement.

The offering of approximately 107.2 million units at $0.28 per unit, consisted of one common share and one common share purchase warrant. The warrants have an exercise price of $0.35 for three years.

Funds managed by Arias Resource Capital Management purchased approximately 53.6 million units, and now hold 307.9 million shares representing 28.18% of the issued and outstanding shares.

This would grow to 33.6% in the event that the Arias funds were to exercise all of the convertible securities held by them.

Funds managed by Mackenzie Investments purchased approximately 5.7 million units, and now hold about 158.1 million common shares representing 14.46% of the issued and outstanding shares.

This would grow to 17.73% in the event that the Mackenzie funds were to exercise all of the convertible securities held by them.

The company’s immediate goal is to ramp-up production at its Maracàs Menchen Mine in Brazil.

The mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer.

With an off-take in place with commodities giant Glencore, for 100% of all material produced, Largo is well positioned to become a leading producer of vanadium globally.

Vanadium is primarily used as an alloy to strengthen steel and reduce its weight and is used in a growing range of products including rebar, automobiles, and transport infrastructure.

Largo also has interests in a portfolio of other projects, including a 100% in a tungsten tailings project in Brazil, a 100% in an iron-vanadium project in Brazil, and a 100% interest in tungsten-moly property in Yukon Territory, Canada.

The shares are trading at $0.24 and with 1.09 billion shares currently outstanding, the company is capitalized at $262 million.

For more information, please visit the company’s website www.largoresources.com, contact Darcie Ladd, Corporate Development at 416-861-9406 or email dladd@largoresources.com.
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I’m Samantha Deutscher for Investmentpitch media
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