Largo has received counter-signed term sheet from its lenders for debt restructuring and extension on export credit facility
April 30, 2015 (Source: CNW) — Largo Resources Ltd. (“Largo” or the “Company“) further to its press release dated April 27, 2015 is pleased to announce that it has received a completed and counter-signed term sheet by working cooperatively with its lenders (the “Lenders”) for the restructuring of its debt facilities for its Maracas Menchen Mine.
The restructuring includes deferring its debt amortization schedule as well as extending the maturities for the majority of its construction debt facility1 (“BNDES Loan“) and its export credit facilities (together, the “Facilities“).
The closing of the restructured Facilities will be dependent on the fulfillment of certain conditions precedent by the Company prior and final approval by its Lenders once these conditions precedent have been met. Largo anticipates that the process will be concluded prior to the commencement of the existing amortization period for its BNDES Loan facility which is currently determined to be the 15th of May.
Additionally, Largo is pleased to announce that it has received a 15 day extension for the initial repayment of its export credit facility, which was initially scheduled for the 30th of April.
Mark Smith, President and Chief Executive Officer to Largo, stated: “I would like to take this opportunity to sincerely thank our Lenders for their ongoing support and commitment to the project. It is a demonstration of the positive working relationship we have with our banking partners and the strong mutual trust we have established.”
He continued: “I believe our Lenders share our vision of success for the Maracas Menchen Mine and that this is a testament to the quality and potential of the Maracas project itself”
1 As stated in a press release on April 27, 2015, there will be no change in the maturity of the R$ component of the BNDES Loan. The BNDES Loan is denominated in Brazilian reais (R$), but approximately 63%, or CDN$111,497 (R$257,676), of the facility is indexed to the U.S. dollar (“U.S. dollar component”). The remaining 37% is not indexed (“R$ component”).
Largo (TSX-V: LGO) is a growing strategic mineral company focused on continuing to ramp-up production at its Vanadio de Maracás Menchen Mine.
Largo’s Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to generate substantial cash-flows.
Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. With a compound annual growth rate of over 6% for the past several years (Roskill, 2013), vanadium is a bourgeoning commodity which lacks opportunities for investment in the wider market place. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to continue this growth over the medium and long term.
Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada.
Largo is listed on the TSX Venture Exchange under the symbol “LGO“.
This press release contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Largo’s development potential and timetable of its operating, development and exploration assets; Largo’s ability to raise additional funds necessary; the future price of vanadium, tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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