Largo Inc (LGO)

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Largo To Sell Vanadium In Higher Margin Markets



Largo announces agreement to qualify its vanadium for use and sale in the aerospace alloy sector

December 20, 2016

TORONTO, Dec. 20, 2016 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is very pleased to announce that it intends to produce, qualify and sell its vanadium products at the specifications required for use in the aerospace alloy market sector via Glencore International AG, the existing exclusive off taker of all vanadium product currently produced from the Maracás Menchen Mine.
High strength low alloy vanadium steels are replacing lower strength traditional steels at an accelerating pace as the steel industry increasingly demands stronger and lighter products for advanced applications. Largo's vanadium products are among the highest quality in the industry, which enables the Company to pursue the use of its vanadium products at higher price points in specialty steel and alloy applications. The benefit of participating in a more profitable market sector along with rising vanadium prices presents a unique opportunity to the Company and its shareholders.
Mark Smith, President and Chief Executive Officer for Largo, stated: "Now that the Maracás Menchen Mine has demonstrated stable and consistent operations, it is poised to benefit greatly from selling its vanadium products into higher margin market sectors as well as from general increases in vanadium prices, which we anticipate will strengthen further during 2017."  Mr. Smith continued "I am also very pleased with our team's newest daily production record of 39 tonnes, which was achieved on December 17, 2016. This daily production record also exceeds nameplate capacity on a daily basis by approximately 48%."

http://www.largoresources.com/English/investors/news/news-release-details/2016/Largo-announces-agreement-to-qualify-its-vanadium-for-use-and-sale-in-the-aerospace-alloy-sector/default.aspx

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