VANADIUM: Largo raising up to $50M for Menchen mine

BRAZIL – Largo Resources of Toronto has successfully restructured its debt thanks to its creditors' co-operation and a private placement that could reach $50 million with which to support the Menchen vanadium mine. A minimum equity raise of US$35 million is one of the conditions for the debt restructuring.

The company is issuing units at a price of $0.80 each. Each unit will consist of one Largo common share and a purchase warrant for one-half a share. Warrants may be exercised for $1.50 per warrant share for a period of 12 months after the offering closes. The agent, Mackie Research Capital Corp., has been granted a 15% overallotment.

Largo says its Maracas Menchen deposit is believed to be highest grade vanadium deposit ever discovered, and it has the potential to be a low-cost producer. The vanadium is contained within a massive, titaniferous magnetite with very low levels of contaminants such as silica.

Production began in August 2014 and ramp-up is now underway to 9,600 tonnes V₂O₅ annually for the first phase of operation. Eventually, production is to reach 11,400 tonnes of V₂O₅Eq annually over a 29-year mine life. The concentrate has a grade of 3.4% V₂O₅.

More about this flagship project is posted at LargoResources.com.