Business
Largo Receives US$56 Million Binding Term Sheet for the Sale of 4.5 Million Tons of Iron Ore Calcine
All dollar amounts expressed are in U.S. dollars. Largo Inc. (" Largo " or the " ...
About this update from Largo Inc.
[{"type":"text","content":"Largo Receives US$56 Million Binding Term Sheet for the Sale of 4.5 Million Tons of Iron Ore Calcine\n\n\n\n\n\n\n All dollar amounts expressed are in U.S. dollars.\n \n\n\n\n Largo Inc. (\"\n \n Largo\n \n \" or the \"\n \n Company\n \n \") (\n \n TSX: LGO\n \n ) (\n \n NASDAQ: LGO\n \n ), the world’s largest primary vanadium producer, today announced that its Brazilian operating subsidiary has received a binding term sheet related to the potential monetization of 4.5 million of iron ore calcine material that was produced as a byproduct and accumulated in a stockpile over the past 11 years of Largo’s vanadium production at the Company’s Maracás Menchen mine in Maracás, Bahia, Brazil.\n \n\n The binding term sheet provides for a multi-year Ex Works (EXW) contract for potential cash proceeds in excess of US$56 million, subject to final documentation, amendments to certain commercial terms, and customary conditions. The Company views this term sheet as an opportunity to unlock value from accumulated materials, reduce future infrastructure requirements for stockpiles and reduce disposal costs while maintaining focus on its primary vanadium business.\n \n\n This binding term sheet underscores market interest in Largo’s diversified vanadium byproduct portfolio, which includes materials containing iron ore, titanium, and other mineral components produced alongside the Company’s core vanadium operations. Through its mining and ore processing activities in the past 11 years, Largo has accumulated several stockpiles of byproduct or processing residue material, representing a significant inventory available for reprocessing and/or commercialization.\n \n\n “This binding term sheet reflects external demand for materials generated as byproducts from our operations and highlights the strategic value of Largo’s byproduct inventory as a way to enhance further the cost-competitiveness of our vanadium business,” said Mr. Alberto Arias and Mr. Daniel Tellechea, Co-CEOs of Largo. “We believe this approach provides a constructive path to realizing value from assets already on hand, while supporting our broader financial and operational objectives.”\n \n\n There can be no assurance that a final transaction will be completed or that it will be completed on the terms curre...