Largo Resources Ltd. Announces Completion of Restructuring of Debt Facilities with Banco Pine
TORONTO, April 4, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is pleased to announce that it, along with its operating subsidiary, Vanádio de Maracás S.A. ("Vanádio"), have completed a restructuring and conversion of Vanádio's existing debt facilities with Banco Pine S.A (the "Lender") all in accordance with the terms previously announced in the Company's press release of March 8, 2018.
As a result of the restructuring, approximately USD$9 million of debt owed by VMSA has been paid down and the remaining balance (being R$69 million or approximately $USD 20.8 million) has been restructured over an approximately 6.5 year period all in accordance with the terms more fully set out in the March 8, 2018 press release. The completion by VMSA and Largo of this restructuring together with the closing of the shares-for-debt transaction between the Largo and the Lender completed on December 13, 2017 (see press release of the same date), has resulted in the complete restructuring of the previously existing debt facilities with the Lender.
Mark Smith, President and Chief Executive Officer for Largo, stated: "We are very pleased with the result of this restructuring and believe that this complete restructuring with Banco Pine is a strong first step in creating a debt profile that enables the Company to better match its future cash flows with its debt servicing obligations. We would like to thank Banco Pine for the support it has shown the Company and for working with us to find a restructuring solution that benefits both parties. Largo has been able to achieve these great results in part due to the continued strength in the price of vanadium which is now driving much improved cash flow at operations."
About Largo
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. As the only pure-play producer of vanadium, Largo is one of the lowest cost producers of the mineral in the world and is directly exposed to the record vanadium prices recently recorded. Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada. 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 Information
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 loan restructuring and conversion of existing debt and the definitive terms thereon; Largo's development potential and timetable of its operating, development and exploration assets; Largo's ability to raise additional funds necessary; the future price of vanadium, tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; 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; currency exchange rates; government regulation of mining operations; and environmental risks. 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". 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.
SOURCE Largo Resources Ltd.
Largo Investor Relations, +1 416‐861‐9797, [email protected]
.jpg)
Share this article