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Largo Resources Ltd. announces execution of new Brazilian bank facility and restructuring of its existing facilities with its commercial lenders
Largo Resources Ltd. announces execution of new Brazilian bank facility and restructuring ...
About this update from Largo Inc.
[{"type":"text","content":"\n\n\n\nLargo Resources Ltd. announces execution of new Brazilian bank facility and restructuring of its existing facilities with its commercial lenders\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 28, 2016\n\n\n\nTORONTO, Dec. 28, 2016 /CNW/ - Largo Resources Ltd. (TSX-V:LGO) (\"Largo\" or the \"Company\") is pleased to announce that, further to its press release of December 8, 2016, Largo and Vanadio de Maracás SA (\"VMSA\"), the Company's operating subsidiary, have entered into definitive agreements (the \"Facility Documents\") with each of its three existing commercial banks in Brazil (collectively, the \"Lenders\") for a new debt facility (collectively, the \"2017 Facility\") and the restructuring of its existing facilities with the Lenders related to its Maracás Menchen Mine. \n\nThe terms of the 2017 Facility, consistent with the previously announced binding term sheet with the Lenders, include:\n\n\nWorking capital facility of up to R$140,000,000 (Brazilian reais), granted by the Lenders \nThe 2017 Facility will be used for the payment of principal and interest falling due during 2017 on the existing loan from the Brazilian Development Bank (\"the \"BNDES Loan\"), as well as principal and interest falling due during 2017 on existing debt facilities from certain banks within the group of Lenders. \nThe grace period for the amortization of principal of the 2017 Facility will be from the initial disbursement date thereof to March 29, 2018. \nPrincipal and interest payments on the 2017 Facility becomes payable on a quarterly basis, in arrears, starting on March 30, 2018, over a period of 56 months. \nThe 2017 Facility has an applicable interest rate equivalent to the Brazilian interbank rate (the \"CDI Rate\") plus 5.7% per annum. \nThe final maturity date of the 2017 Facility will be 72 months after the initial disbursement date\n\nThe Facility Documents contain certain conditions precedent by the Company prior to funding, including, injecting an additional US$15,000,000 for on-going working capital requirements at ...