Largo Secures US$82.2 Million Debt Restructuring, Extending Maturity to 2030 All amounts expressed are in U.S. dollars, denoted by "$".
Largo Secures US$82.2 Million Debt
Restructuring, Extending Maturity to 2030
All amounts expressed are in U.S. dollars, denoted by "$".
Key Highlights:
Largo and its subsidiary, Largo Vanádio de Maracás S.A. ("
LVMSA
"), have signed a binding term
sheet to restructure approximately US$82.2 million of LVMSA's outstanding commercial bank
debt, with LVMSA being the owner and operator of the Maracás Menchen Mine.
The final maturities of the commercial bank debt have been extended from September 2026 to
March 2030.
The restructured debt includes a six-month principal amortization grace period, preserving near-
term liquidity, followed by 36 months of quarterly principal amortization, with interest to be payable
monthly.
The principal amortization is better aligned with Largo's operational execution plans and cash
generation potential, while providing additional time to unlock value from the Company's assets
and pursue recently announced strategic alternatives to enhance shareholder value, including the
strategic review of Largo's tungsten assets in Canada and Brazil.
Largo will host its Q2 2026 Earnings Results Webcast on Friday, August 21, 2026, at 9:00 a.m. ET
to discuss the Company's second-quarter 2026 financial and operating results and recent
developments.
Toronto, Ontario--(Newsfile Corp. - August 20, 2026) - Largo Inc.
(TSX: LGO) (NASDAQ:
LGO)
("
Largo
" or the "
Company
"), the world's largest primary vanadium producer, today announced
that the Company and its Brazilian operating subsidiary, Largo Vanádio de Maracás S.A. ("
LVMSA
"),
have entered into a binding term sheet with Banco do Brasil S.A., Banco BTG Pactual S.A., Banco
Bradesco S.A., Banco Santander (Brasil) S.A., and Caixa Econômica Federal to restructure
approximately US$82.2 million of outstanding debt, extending the final maturity to March 2030 (the
"
Restructuring
").
Under the proposed revised terms, principal payments will be subject to a six-month grace period,
followed by 36 months of quarterly principal amortization, while interest will be payable monthly.
The Restructuring provides Largo with additional time to execute its operational plans and unlock
incremental value from its existing operations at the Maracás Menchen Mine. In particular, the Company
is focused on ramping up copper-PGM concentrate production and progressing toward first commercial
sales, as well as preparing for the first shipment of high-purity vanadium pentoxide to the U.S. Defense
Logistics Agency under the US$60 million first order announced in July 2026.
Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo, commented: "
We
appreciate the constructive engagement and continued support of Banco do Brasil, BTG Pactual,
Bradesco, Santander, and Caixa Econômica Federal."
Mr. James Bannantine, Co-Chief Executive Officer of Largo, added:
"The extension of our debt
maturities from September 2026 to March 2030 gives the Company greater runway as we focus on
improving operational performance and cash generation at the Company. We are focused on tariff-
free high-purity vanadium sales, including to the Defense Logistic Agency, increasing revenues from
the sale of copper, gold, platinum and palladium by-products and increasing operating efficiencies
across the whole organization. Our priority now is to execute against these operational initiatives and
build sustainable momentum across the business."
The Restructuring remains subject to the negotiation and execution of definitive documentation
satisfactory to the parties including settling the interest rate, documenting the collateral package to be
provided by Largo and LVMSA and satisfaction of customary closing conditions.
Q2 2026 Earnings Results Webconference
Largo invites investors and analysts to join its Q2 2026 Earnings Results Webcast on Friday, August 21,
2026, at 9:00 a.m. ET. Management will discuss the Company's second-quarter 2026 financial and
operating results and recent developments, followed by a question-and-answer session.
The webcast
can be accessed through the Presentations and Events section of Largo's website at
www.largoinc.com
,
or at
https://mzgroup.zoom.us/webinar/register/WN_F6ZSr18fR6uHv_2kt3W5Pg#/
registration
About Largo
Largo is the world's largest primary vanadium producer and a globally recognized supplier of high-quality
vanadium products, sourced from its world-class Maracás Menchen Mine in Brazil. Largo produces
critical materials that empower global industries, including steel, aerospace, defense, chemical, and
energy storage sectors. The Company is committed to operational excellence and sustainability,
leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the clean energy storage sector through its 37.4% ownership of
Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production
for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
The Company also holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property
located in the Yukon Territory, Canada, and 100% interest in the Currais Novos Tungsten Project near
Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under
the symbol "LGO". For more information on the Company, please visit
www.largoinc.com
.
###
For further information, please contact:
Investor Relations
Vera Abdo
Investor Relations Consultant
+1.640.223.6956
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" within the
meaning of applicable securities legislation. Forward-looking information in this press release may
include, but is not limited to, the ability of the Company to continue as a going concern, the ability of
the Company to keep the Maracás Menchen Mine operating and create incremental value therefrom;
the ability of the Company to negotiate definitive
documentation satisfactory to the parties, including
settling the interest rate; the Company's ability to service its indebtedness and meet its financial
obligations as they become due; the Company's ability to maintain sufficient liquidity and generate
sufficient cash flows from operations; customer demand and sales volumes; the Company's future
strategy; the timing and quantity of deliveries under the U.S. Defense Logistics Agency delivery order;
the Company's ability to fulfill contractual requirements and meet applicable technical and quality
specifications; the Company's ability to source, install, and commission additional processing
equipment on expected timelines and budgets; the impact of U.S. tariffs, exemptions and other trade
measures; the impact of potential future changes in U.S. tariffs; the future price of commodities; the
future of FeV prices and the Company's ability to benefit from the strengthening of those prices; the
expected development and commercialization of electrolyte production through the Storion Energy
joint venture; the Company's ability to execute its production, inventory, commercial and by-product
development plans; the Company's ability to commercialize copper and PGMs concentrates; and the
potential economic benefits of the copper-PGM initiative;.
The following are some of the assumptions upon which forward-looking information is based: that
general business and economic conditions will not change in a material adverse manner; demand for,
and stable or improving price of V
2
O
5
and other vanadium products and titanium dioxide pigment;
that the current U.S. tariff rate on Brazilian imports will remain at or near current levels and the tariff
classification of the Company's vanadium products will remain unchanged; receipt of regulatory and
governmental approvals, permits and renewals in a timely manner; the continued validity and
effectiveness of the ANM approval and satisfaction of any conditions attached to it; receipt of any
additional regulatory and governmental approvals; the suitability of existing mineral feed and
processing infrastructure for copper-PGM concentrate production; achievement of expected
recoveries and product specifications; that the Company will not experience any material accident,
labour dispute or failure of plant or equipment or other material disruption in the Company's
operations at the Maracás Menchen Mine; the availability of financing for operations and
development; the Company's ability to make required principal and interest payments under the
proposed debt restructuring and meet its other financial obligations as they become due; the
Company's ability to fund operations; the availability of funding for future capital expenditures; the
ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation,
access to massive ore, the Company's ability to procure equipment, services and operating supplies
in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the
Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size,
grade and recovery and the operational and price assumptions on which such estimates are based);
the accuracy of the Company's mine plan at the Maracás Menchen Mine; the ability to obtain funding
through government grants and awards for the Green Energy sector; that the Company's current plans
for vanadium and ilmenite can be achieved; the Company's ability to protect and develop its
technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in
an evolving market; that the Company will enter into agreements for the sales of vanadium and
copper-PGM concentrates on favourable terms and for the sale of substantially all of its annual
production capacity; the Company's ability to attract and retain skilled personnel and directors; the
ability of management to execute strategic goals; uncertainty regarding future sales volumes and
customer demand; changes in global trade policies, including the imposition of tariffs or other trade
restrictions by the United States or other jurisdictions.
Forward-looking statements 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", although not all forward-looking statements include those words or phrases.
In addition, any statements that refer to expectations, intentions, projections, guidance, potential, or
other characterizations of future events or circumstances contain forward-looking information. Forward-
looking statements are not historical facts nor assurances of future performance but instead represent
management's expectations, estimates, and projections regarding future events or circumstances.
Forward-looking statements are based on our opinions, estimates and assumptions that we
considered appropriate and reasonable as of the date such information is stated, subject to known
and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Largo to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to those risks described in the annual
information form of Largo and in its public documents filed on
www.sedarplus.ca
and available on
www.sec.gov
from time to time. Forward-looking statements 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 statements, 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 statements.
Largo does not undertake to update any forward-looking statements, except in accordance with
applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's
annual and interim MD&A, which also apply.
Trademarks are owned by Largo Inc.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/310668