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Largo Resources announces closing of $17 million private placement financing
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DI...
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, Dec. 13, 2013 /CNW/ - Largo Resources Ltd. (TSX-V:LGO) (\"Largo\" or the \"Company\") is pleased to announce that it has closed its previously announced\n non-brokered private placement of common shares (the \"Offering\") through the issuance of 84,999,150 common shares of the Company (the\n \"Common Shares\") at a price of C$0.20 per Common Share for aggregate gross proceeds of\n $16,999,830, all in accordance with the terms contained in a press\n release dated November 29, 2013. Largo intends to use the net proceeds\n of the Offering for the Company's Maracás Vanadium Project and general\n corporate purposes.\n\n\nLargo is pleased to announce that funds managed by Arias Resource\n Capital Management LP (the \"ARC Funds\") participated in the Offering and acquired an aggregate of 75,000,000\n Common Shares issued in the Offering. The ARC Funds are insiders of the\n Company by virtue of their ownership of Common Shares prior to closing.\n Upon closing of the Offering, the ARC Funds own an aggregate of\n 254,308,350 Common Shares, representing 25.89% of the issued and\n outstanding Common Shares (or 28.48% of the Company's then issued and\n outstanding  Common Shares in the event that the ARC Funds exercise all\n of the convertible securities held  by them).\n\n\nThe Common Shares issued pursuant to the Offering will be subject to a\n regulatory hold period of four months and one day from the date of\n issuance. The Offering remains subject to final TSX Venture Exchange\n acceptance of requisite regulatory filings.\n\n\nThe Offering was considered and approved by the board of directors of\n the Company. J. Alberto Arias, a director of Largo who is also the sole\n director of each of the general partners of the ARC Funds and\n indirectly controls Arias Resource Capital Management LP, declared a\n conflict and recused himself from voting on the Offering. There was no\n materially contrary view or abstention by any director approving the\n Offering.\n\n\nPursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the purchase by the ARC Funds was a \"related party transaction\". The\n Company was...