Largo Announces Purchase of Final 30% Option on the Northern Dancer Project
TORONTO, ONTARIO -- (Marketwire) -- 06/15/11 -- Largo Resources Ltd. (TSX VENTURE: LGO) ('Largo' or the 'Company') is pleased to announce that it has entered into a definitive agreement to acquire the remaining 30% interest that it does not currently own in the Northern Dancer tungsten-molybdenum porphyry project in Yukon, Canada.
Presently the Company holds, through its wholly-owned Yukon subsidiary, a 70% interest in the Northern Dancer project. The Company will now acquire the remaining 30% interest in the project from Strategic Metals Ltd. ('Strategic'), pursuant to a purchase agreement, for aggregate consideration to Strategic of $5 million, payable in $2.5 million in cash and the issuance of 5,512,679 common shares of Largo. Strategic will retain a 1% net smelter return interest in the project. The transaction remains subject to receipt of final approval of the TSX Venture Exchange and customary registration requirements.
Mark Brennan, President and Chief Executive Officer stated: 'We are pleased to finalize the acquisition of the remaining 30% interest in the Northern Dancer Project as we move into the pre feasibility stage of development.' He added, 'The recently announced Preliminary Economic Assessment results have demonstrated that the Northern Dancer project has the potential to become a very profitable operation for Largo.'
About the Northern Dancer Project:
The Northern Dancer Project hosts a Measured and Indicated NI43-101 compliant resource of 30.8 million tonnes grading 0.114% WO3 and 0.030% Mo (Measured), and 192.6 million tonnes grading 0.100% WO3 and 0.029% Mo (Indicated). The Measured and Indicated mineral resource estimate contains 223.4 k tonnes of WO3 and 143.9 million pounds of Mo (65.2 k tonnes). Additionally, an Inferred resource of 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo containing 178.3 k tonnes WO3 and 48.9 k tonnes of Mo has been delineated. A Preliminary Economic Assessment for the project was released in February, 2011 (See press release dated February 28, 2011). Based on the positive economic results which were defined in this report, the company will proceed with a Preliminary Feasibility Study which will commence imminently.
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 an 80% 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 in 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.
Cautionary Statement on Forward Looking Information
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the completion of the acquisition of the remaining interest in the Northern Dancer project and the receipt of necessary approvals. Generally, forward-looking information 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 state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, 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