Largo Acquires an Additional 10% Interest in the Maracas Vanadium Project
TORONTO, ONTARIO -- (Marketwire) -- 03/29/11 -- 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