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Largo Announces Bridge Loan of US$1 Million
Largo Announces Bridge Loan of US$1 Million Largo Announces Bridge Loan of US$1 Mi...
About this update from Largo Inc.
[{"type":"text","content":"\n\n\n\nLargo Announces Bridge Loan of US$1 Million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nLargo Announces Bridge Loan of US$1 Million\nCanada NewsWire\nTORONTO, Jan. 14, 2016\n\n\n\nTORONTO, Jan. 14, 2016 /CNW/ - Largo Resources Ltd. (\"Largo\" or the \"Company\") is pleased to announce that the Company has entered into a short term secured loan agreement with Mr. Mark Smith, Chief Executive Officer and a Director of Largo, pursuant to which Mr. Smith has advanced a US$1 million non-revolving term loan bearing an interest rate of 12% per annum (the \"Bridge Loan \"). The proceeds of the Bridge Loan will be used for ongoing working capital requirements at the Company's Maracás Menchen Mine for the period prior to the Company's restructuring of its existing credit facilities with its consortium of Brazilian lenders and the related equity injection as disclosed in its press release of December 17, 2015. The Bridge Loan will have a 30-day term, subject to acceleration in certain events. The Bridge Loan is secured by a general security agreement over the assets of the Company.  As consideration for entering into the Bridge Loan, the Company will pay to Mr. Smith a loan establishment fee in the amount of US$40,000.\n\nThe entering into of the Bridge Loan was considered and approved by the board of directors of the Company. Mr. Smith declared a conflict and recused himself from voting on the Bridge Loan. The remaining directors voted unanimously to approve the Bridge Loan.\n\nPursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), entering into the Bridge Loan with Mr. Smith will be a \"related party transaction\". The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Bridge Loan in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as neither the fair market value of the subject matter of the Bridge Loan, nor the fair market value of the consideration for the Bridge Loan exceeds 25% of ...