Largo Announces Completion of Qualifying Transaction for Largo Physical Vanadium Corp.
Largo Announces Completion of Qualifying
Transaction for Largo Physical Vanadium
Corp.
TORONTO--(BUSINESS WIRE)--September 15, 2022--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) is pleased to announce that Column Capital Corp. (“CPC”) has
received conditional approval from the TSX Venture Exchange (the “TSXV”) in respect of its
qualifying transaction (the “Transaction”) with Largo Physical Vanadium (“LPV”) pursuant to
Policy 2.4 - Capital Pool Companies of the TSXV. In connection with the Transaction and
pursuant to TSXV requirements, CPC has filed a filing statement dated September 13, 2022 (the
“Filing Statement”) on SEDAR (www.sedar.com).
Once TSXV provides receipt of customary post-closing documentation, the LPV common shares
(the “Common Shares”) will commence trading on the TSXV under the symbol “VAND”. The
Company expects that the post-closing documentation will be completed by the end of
September 2022.
Paulo Misk, President and Chief Executive Officer of Largo commented: “Completion of the
Qualifying Transaction represents an important milestone for Largo, LPV and the vanadium
sector. Leveraging the unique characteristics of vanadium, prospective investors are now
provided with a new vehicle to invest in physical vanadium and gain exposure to the long-term
fundamentals of the commodity – a key transition metal for greener steel, strategic and energy
storage industries.” He continued: “Through the segregation of vanadium, a key cost component
of vanadium redox flow batteries (“VRFB”), LPV intends to enhance the adoption of VRFBs by
prospective customers in the long duration energy storage market and thus, grow vanadium
demand in the future.”
LPV aims to provide a secure, convenient and exchange-traded investment alternative for
investors interested in having direct exposure to physical vanadium and not speculating with
regard to short-term changes in vanadium prices. LPV will offer pure-play exposure to vanadium
and will initially hold approximately 200 mt of vanadium pentoxide equivalent contributed by
the Company in connection with the Qualifying Transaction (the “Largo Contribution-in-
Kind”) and further vanadium to be acquired with the proceeds of its CAD$30,220,000
subscription receipt financing that closed on April 14, 2022 (the “Financing”). LPV will acquire
and store vanadium units in commercial forms as well as in electrolyte solutions for VRFB
applications due to the unique non-degradation characteristic of the metal.
Largo will provide services to LPV pursuant to a safekeeping agreement, supply agreement and
technical advisory agreement, each effective on completion of the Qualifying Transaction. In
addition to the vanadium contributed pursuant to the Largo Contribution-in-Kind, under the
supply agreement Largo has granted LPV a right of first refusal over any non-committed
commercial vanadium equivalent products from January to September of each fiscal year. LPV
will also benefit from its relationships with Sprott Capital Partners LP and Term Oil Inc. through
an advisory services agreement effective on completion of the Qualifying Transaction.
About LPV
LPV aims to provide a secure, convenient and exchange-traded investment alternative for
investors interested in having direct exposure to physical vanadium, which is essential to achieve
a greener world in key industries such as steel, aerospace and energy storage. Vanadium is non-
degrading and fully recyclable when used as electrolyte in vanadium redox flow batteries
(VRFBs) and offers carbon reducing attributes when used in steel alloying applications. LPV’s
strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and
actively supply vanadium to end users of VRFBs to advance to integration of renewable energy
in long duration storage. This strategy is integral to LPV’s business plan, as it necessarily defrays
the costs associated with using vanadium in VRFBs through the unique non-degradation
characteristics of the metal.
About Largo
Largo has a long and successful history as one of the world’s preferred vanadium companies
through the supply of its VPURE™ and VPURE+™ products, which are sourced from one of the
world's highest-grade vanadium deposits at the Company's Maracás Menchen Mine in Brazil.
Aiming to enhance value creation at Largo, the Company is in the process of implementing a
titanium dioxide pigment plant using feedstock sourced from its existing operations in addition
to advancing its U.S.-based clean energy division with its VCHARGE vanadium batteries.
Largo’s VCHARGE vanadium batteries contain a variety of innovations, enabling an efficient,
safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year
lifespan. Producing some of the world’s highest quality vanadium, Largo’s strategic business
plan is based on two pillars: 1.) vanadium production from its operations in Brazil and 2.) energy
storage business in the U.S. to support a low carbon future through its clean energy division.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange
under the symbol "LGO". For more information, please visit www.largoinc.com.
Cautionary Statement on Forward-looking Information:
This press release contains forward-looking information under applicable securities legislation
(“forward-looking information”). Forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All
information contained in this news release, other than statements of current and historical fact,
is forward looking information. Forward-looking statements contained in this press release
include, but are not limited to, statements regarding the anticipated trading day of LPV shares
on the TSXV, the occurrence and terms of further purchases of vanadium on behalf of LPV, the
services to be provided to LPV under the advisory services, safekeeping, supply and technical
advisory agreement, LPV’s strategy and business plants, the VRFB market and the value of and
uses for vanadium.
Forward-looking information is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking information,
including but not limited to risks relating to: the ability of LPV to satisfy the conditions to
completion of the Qualifying Transaction and the receipt by LPV of all requisite final approvals
for the Qualifying Transaction, including TSXV approval. those risks described in the annual
information form of Largo and in its public documents filed on www.sedar.com and www.sec.gov
from time to time. Forward-looking information are based on the opinions and estimates of
management as of the date such statements are made. Although management of Largo has
attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on
Forward-looking information. Largo does not undertake to update any forward-looking
information, except in accordance with applicable securities laws. Readers should also review
the risks and uncertainties sections of Largo’s annual and interim MD&As which also apply.
Trademarks are owned by Largo Inc.
Contacts
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
LPV Contact
Paul Vollant
President & Chief Executive Officer
+41.796.630.895