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Largo Resources announces C$17 million non-brokered private placement financing
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About this update from Largo Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE,\n PUBLICATION, DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES/\n\n\nTORONTO, Nov. 29, 2013 /CNW/ - Largo Resources Ltd. (TSXV:LGO) (\"Largo\" or the \"Company\") announced today a C$17 million non-brokered private placement of\n common shares (the \"Offering\") at a price of C$0.20 per common share resulting in the issuance of up\n to 85,000,000 common shares. Proceeds from the offering will be used\n for the Company's Maracás Vanadium Project and general corporate\n purposes.\n\n\nThe Company anticipates that approximately C$15 million of the Offering,\n or up to 75,000,000 common shares, will be purchased by funds managed\n by Arias Resource Capital Management LP (the \"ARC Funds\"). Largo anticipates that the remaining C$2 million of the Offering\n will be purchased by existing shareholders of the Company.\n\n\nThe ARC Funds are insiders of the Company by virtue of their current\n ownership of approximately 19.98% of the Company's common shares. \n Assuming the Offering is fully sold, it is expected that after\n completion of the Offering, the ARC Funds will own up to 25.89% of the\n Company's then issued and outstanding common shares (or 28.48% of the\n Company's then issued and outstanding common shares in the event that\n the ARC Funds exercise all of the convertible securities held by them).\n Accordingly, the ARC Funds will be a \"Control Person\" of the Company as\n defined in the TSX Venture Exchange Corporate Finance Manual. At the\n annual and special meeting of the shareholders of the Company held on\n June 27, 2013, the shareholders of the Company approved the creation of\n the ARC Funds as a Control Person of the Company, all as more fully set\n out in Largo's management information circular dated May 23, 2013 and\n filed on www.SEDAR.com.\n\n\nThe Offering is expected to close on or about December 11, 2013 and is\n subject to certain customary closing conditions, including but not\n limited to receipt of all required regulatory approvals, including the\n approval of the TSX Venture Exchange. All common shares of the Company\n issued in connection with the Offering will be subject to a hold period\n in Canada of four months and one day from the date of issuance.\n\n\nThe Offering was considered and approved by the board of...