Largo Resources Further Reduces its Debt with Repurchase of US$26 Million of its 9.25% Senior Secured Notes Due 2021
TORONTO, Dec. 16, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce that it has repurchased and retired an additional US$26.0 million in aggregate principal amount plus premium and accrued and unpaid interest in consideration for the payment of US$27.4 million in cash. Following this repurchase for cancellation the remaining aggregate principal amount outstanding on the Company's 9.25% Senior Secured Notes due 2021 (the "Notes") is US$92.8 million, representing a significant decrease of approximately 22%. The Notes were repurchased at 105.125% and the Company worked with Jefferies LLC who arranged for and facilitated the repurchase of the Notes.
Mark Smith, Chief Executive Officer for Largo, stated: "We are very proud to report that upon completion of this additional Note repurchase Largo's outstanding debt balance is now less than US$100 million, highlighting another notable achievement by the Company as a direct result of its strong financial performance. We anticipate having the remainder of the Company's outstanding balance repaid in Q2 2019 but will continue to repurchase additional debt going forward should the opportunity arise and terms be favorable."
About Largo Resources
Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.com.
Forward-looking Statements
This press release contains forward-looking information under Canadian securities legislation. 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". All information contained in this news release, other than statements of current and historical fact, is forward looking information. 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. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As.
Neither the Toronto Stock Exchange (nor its regulatory service provider) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE Largo Resources Ltd.
Alex Guthrie, Manager, Investor Relations and Communications, [email protected], Tel: +1 416‐861‐9797
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