Largo Resources Announces Closing of First Tranche of Private Placement FOR Proceeds of $8 Million
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This release is intended for distribution in Canada only and is not intended for distribution to United
States newswire services or for dissemination in the United States.
LARGO RESOURCES ANNOUNCES CLOSING OF FIRST
TRANCHE OF PRIVATE PLACEMENT FOR PROCEEDS OF $8 MILLION
December 1, 2017 – Toronto, Ontario – Largo Resources Ltd. (TSX - LGO) (the “Corporation”) is
pleased to announce the closing of the first tranche (“First Tranche”) of a non-brokered
private placement of Units (as defined below) at a price of $0.82 per Unit (the “Offering Price”),
for gross proceeds of up to $25,000,000 (the “Offering”).
The Corporation raised gross proceeds of $8,091,769 in the First Tranche through the issuance of
9,868,012 Units. No finders ’ fees were paid and no finders ’ warrants were issued in connection with
this private placement. The Corporation intends to use the proceeds for working capital and repayment
of debt.
Each Unit consists of one common share in the capital of the Corporation and one half of one common
share purchase warrant, with each whole warrant exercisable into one common share at a price of $1.15
for five years from the closing (each a “Unit”).
Mark Smith, President and Chief Executive Officer for Largo, stated: “The ongoing support of our
shareholders underscores the belief our stakeholders continue to have in Largo and its future. This
financing gives us the working capital we need at corporate to focus our resources and time on
operations and debt restructuring in Brazil. We anticipate that 2018 will be a strong year for vanadium
and for Largo.”
An entity managed by Mr. Alberto Beeck, a director of Largo, subscribed for an aggregate of 6,205,365
Units under the First Tranche for gross proceeds to the Corporation of $5,088,399. Prior to the closing
of the First Tranche, entities managed or advised by Mr. Beeck owned 10.35% of the Corporation’s then
issued and outstanding common shares and following closing of the First Tranche, these entities will
own 11.43% (or 16.55% in the event that these entities exercised all of the convertible securities held
by them) of the Corporation’s issued and outstanding common shares.
The sale of Units to the entity managed by Mr. Beeck constitutes a “related party transaction” as defined
under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions
(“MI 61-101”). The Corporation is exempt from the fo rmal valuation and minority shareholder approval
requirements of MI 61-101, as neither the fair market value of securities being issued to insiders nor the
consideration being paid by insiders exceeded 25% of the Corporation ’s market capitalization. None of
the Corporation’ s directors expressed any contrary view s or disagreements with respect to the
foregoing. The Corporation did not file a material change report 21 days prior to the closing of the
Offering as the details of the participation of the insiders of the Corporation had not been confirmed at
that time.
The securities issued in the private placement are subject to a hold period.
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The Corporation expects the second tranche of the Offering to close on or about December 7, 2017, or
such other date as the Corporation determines. It is expected that the second tranche will include the
settlement of approximately $6 million of the Corporation's debt through the issuance of Units at the
Offering Price.
About Largo Resources Ltd.
Largo Resources Ltd. is a growing strategic miner al company focused on the production of vanadium
pentoxide at its Vanadio de Marac ás Menchen Mine. Vanadium is primarily used as an alloy to
strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range
of products that are used and encountered every day; including, rebar, automobiles, transport
infrastructure etc. As trends in the steel industry now demand increasingly stronger and lighter products
for advanced applications, the use of vanadium is ex pected to grow over the medium and long term.
Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos
Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium
Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the
Yukon Territory, Canada. For more information, please visit www.largoresources.com.
Forward-Looking Statements
This news release contains “forward-looking information ” within the meaning of applicable Canadian
securities laws, including statements regarding the anticipated use of proceeds. Forward-looking
information is not a guarantee of future performance or results, since it involves risks and uncertainties.
There is no assurance that forward-looking statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in forward-looking statements. Some of the
factors on which the forward-looking statements are premised include (but are not limited to) the lack of
material changes to general economic, market and business conditions. Forward-looking information is
subject to the risk that those factors will not materialize, and to other risks, including the closing of the
second tranche of the private placement and potential settlement of debt. Except as required by law,
the Corporation does not assume and expressly renounces any obligation to update any forward-looking
information, which is only applicable on the date on which it is given.
For further information, please contact:
Largo Investor Relations