Largo Resources Announces Repayment of Brazilian Debt!$!$
Vanadium now $19.65 per pound! High purity vanadium should be around $24 per pound!
Largo is a cash cow!
TORONTO, Aug. 2, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce that, further to its press release of July 17, 2018, it has now repaid in full an aggregate of US$144.1 million in debt owing to the Brazilian Development Bank ("BNDES") and to Largo's syndicate of commercial lenders comprised of Itaú Unibanco S.A., Banco Bradesco S.A. and Banco Votorantim S.A. (collectively, the "Syndicate"), being all amounts owing to the BNDES and the Syndicate (the "Repayment").
The Repayment was a condition of Largo's US$150 million note offering (the "Offering") which was completed on May 22, 2018 (see press release of same date) pursuant to which Largo was provided with 180 days in which to satisfy the escrow release conditions and provide a pledge over all of the shares it holds in its operating subsidiary, Vanadio de Maracás S.A (the "Pledge"). Having completed the Repayment, Largo is now working to discharge the existing security and anticipates having the Pledge in place well in advance of the deadline provided for under the Offering.
Mr. Mark Smith, Largo's President and Chief Executive Officer, commented "We are very pleased to announce that we have repaid all amounts owing to the BNDES and the Syndicate. We would like to thank the BNDES and Syndicate for their strong support during Largo's formative years and in helping to make us the first greenfield mining project ever to be fully financed on the debt side by Brazilian banks. The repayment represents a fundamental step in Largo's development and will allow us to realize the benefits of our recently completed note offering through the improvement in our capital structure, reduction in interest costs and the simplification of our reporting obligations.
The completion of the restructuring of our debts along with the on-going strength in V205 pricing (price range of V2O5 for the week ended July 27, 2018 of US$19.00/lb V2O5 to US$19.65/lb V2O5 as reported by the European Metal Bulletin) presents a continuing opportunity for our Company and our shareholders."
www.largoresources.com/investors/news/press-release-details/2018/Largo-Resources-Announces-Repayment-of-Brazilian-Debt/default.aspx
Good Luck To All!$!$
