Largo Inc (LGO)

[Slashnuts]

Cash Flow From Operations Funding Obligations!$!$!$

Largo announces waiver of capitalization condition by banks

March 15, 2017

TORONTO, March 15, 2017 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is pleased to announce today that the syndicate of Brazilian commercial lenders (the "Lenders") under the Company's existing debt facilities have agreed to temporarily waive (the "Waiver") the requirement that the Company inject a further US$5 million in working capital into the Company's operating subsidiary, a term which the Lenders had required in connection with the entering of the 2017 Facilities in January (see the Company's press release of January 6, 2017).  

In connection with the granting of this temporary Waiver, the Lenders and the Company are in discussions to use some of the operating subsidiary's cash flow from operations to fund certain payment obligations to the Lenders which had previously been delayed.

Mark Smith, President and Chief Executive Officer for Largo, stated: "The continued generation of cash by operations and the strengthening of the vanadium market generally, have resulted in the Lenders agreeing to grant a waiver from further equity injections at this time. This is a great result for Largo and we look forward to continuing to work with the Lenders to ensure the success of the Company."


http://www.largoresources.com/English/investors/news/news-release-details/2017/Largo-announces-waiver-of-capitalization-condition-by-banks/default.aspx

Good Luck To All!$!$!$