Largo Extends Ammortization and Covenants for Bndes Debt Facility

About this update from Largo Inc.

[{"type":"text","content":"\n\nSymbol: LGO (TSX.V)\n\n\n\nTORONTO, Aug. 7, 2014 /CNW/ - Largo Resources Ltd. (\"Largo\" or the \"Company\") is pleased to announce that the Brazilian Development Bank (\"BNDES\") has approved an extension to the amortization period for the Company's debt facility (the \"Facility\").\n\nThe grace period for the payment of principal will be extended from the original date in August 2014 to April 2015, with the first principal payment to be made in May, 2015. The extension will be applicable to the majority of principal under the Facility, with the exclusion of R$43.4 million (or US$19.4 million) which does not qualify for extension. \n\nThe application of the financial covenants associated with the Facility will likewise be extended from December 2014 to December 2015 by the guarantor banks.\n\nThe terms of the agreement governing the Facility will remain the same with the exception that interest rates of the BNDES funding will increase by a weighted average of 0.23% per year. Once amortization has begun in May 2015, the Facility's amortization period (72 months) will continue over the same period as originally set forth, which means that the timeframe for payment will take place over 63 months from the date of first amortization.\n\nErnest Cleave, Chief Financial Officer for Largo, stated: \"The extension of the Facility will reduce Largo's cash outflow by approximately US$2.1 million per month for the first 9 months of the Maracas Vanadium Project's operations, for a cumulative up-front saving of US$20 million during operational ramp up. This will provide a tremendous benefit to Largo as it will help ensure that we can ramp-up operations effectively and maintain the operating capital we require in the critical first months of the ramp up.\"\n\nHe continued: \"We would like to take this opportunity to thank all of our banking partners for assisting us in completing this endeavor\"\n\nAbout Largo\n\nLargo (TSX-V: LGO) is a growing strategic mineral company with projects in Brazil and Canada. The immediate goal of the Company is to continue to steadily ramp-up production at its Maracás Vanadium Project. \n\nLargo's Maracas Vanadium Project boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with commodities giant Glencore, Largo is well positio...

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