Largo provides update on Capex Budget for the Maracas Vanadium Project

About this update from Largo Inc.

[{"type":"text","content":"\n\n\nSymbol: LGO (TSX.V)\n\n\nTORONTO, Nov. 29, 2013 /CNW/ - Largo Resources Ltd. (\"Largo\" or the \"Company\") is pleased to provide an updated budget estimate (\"Budget\" or\n \"CAPEX\") for mechanical completion of its Maracas Vanadium Project (the\n \"Project\") in Bahia, Brazil.\n\n\nThe current budget forecast for mechanical completion of the project is\n USD $248 million, which includes the full utilization of a USD $7\n million contingency provision that is currently unallocated, versus an\n initial budget of USD $230 million (see press release September 13,\n 2012).\n\n\nThis forecasted variance of USD $18 million is offset by USD $30 million\n in additional funding available from the following:\n\n\n\nUSD $17 million equity currently expected to close in mid-December 2013\n as set out in a press release dated November 29, 2013.\n\n\n\n\nUSD $13 million in additional funding under the Project's lending\n facilities due to depreciation of the Brazilian Real.\n\n\n\n\n\n\nAs such, the Company expects that it will have sufficient funds to\n complete the Project's remaining CAPEX.\n\n\nThe appreciation in the Maracas Project's budget (+7.8%) is primarily\n the consequence of delays to the Project's initial completion date\n resulting from manufacturing issues and the subsequent delay in\n delivery by a supplier of 4 rollers for the kiln and cooler (see press\n release August 21, 2013). Some of the costs associated with this delay\n include: additional work hours and incidentals for electro-mechanical\n contractors and the postponement of anticipated revenue.\n\n\nMark Brennan, President and Chief Executive Officer for Largo, stated:\n \"I am extremely pleased with progress at the Maracas Project to date.\n Although we are disappointed that the delay in the delivery of the kiln\n cooler rollers has caused a slight increase to our projected budget, I\n must commend my team for their diligence in maintaining such a close\n track to the budget despite these circumstances.\" He added, \"It is\n quite uncommon for projects of this size and scale to be so close to\n the initial projected budget at this advanced stage of development. We\n are confident that we will complete construction in Q1, and expect that\n we will also will continue to track very close to this revised budget\n for which we are sufficiently funded.\"\n\n\nAbo...

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