Largo Resources Ltd
Yukon Territory - Brazil - Ecuador: Gold-Copper, Vanadium PGE , tungsten/molybdenum
Message: Closes Private Placement Financing and Announces Shares for Debt Settlement
| February 5, 2009 |
|
Largo Resources Closes Private Placement Financing and Announces Shares for Debt Settlement
Working Captial of $3.1 million increased through private placement, shares for debt and flow through funding |
| TORONTO, ONTARIO--(Marketwire - Feb. 5, 2009) - Largo Resources Ltd. ("Largo" or the "Company") (TSX VENTURE:LGO) is pleased to announce that it has increased working capital by approximately $3.1 million by private placement, shares for debt and flow through funding. Today, Largo closed its previously announced non-brokered private placement financing through the issuance of 39,319,511 common shares at $0.06 per common share for total gross proceeds to the Company of $2,359,170.74. The closing remains subject to receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange. The common shares will be subject to resale restrictions for a period of four months plus one day from the closing date. In connection with the financing, Largo has paid Delano Capital Corp. and Union Securities Ltd. (the "Agents") a finder's fee equal to 5.0% of the gross proceeds raised by each of the Agents respectively. This financing is in addition to the $500,000 flow-through financing previously announced and closed on December 31, 2008. In addition, Largo is pleased to announce that it has successfully reached a settlement agreement with creditors of the Company to re-structure $243,717.36 in outstanding net debt. Largo will settle the outstanding amount through the issuance of 4,061,956 common shares of the Company. This transaction is subject to TSX Venture Exchange approval. Following the completion of this debt settlement, Largo will have 171,864,476 common shares issued and outstanding. The proceeds of the financing will be used by the Company for completion of the Localization License; the crucial environmental license, at its Maracas Vanadium-PGM deposit in Bahia, Brazil and for working capital purposes. About Largo Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO. For more information please refer to Largo's website: www.largoresources.com. |
3 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply