Largo Resources Announces Completion Of Private Placement
April 26, 2007
Largo Resources Ltd. has completed its previously declared private placement of units for total gross proceeds to the company of $10,009,975 based on the issue and sale of 18,199,955 units at a price of 55 cents per unit, including 9,099,955 units that were issued pursuant to the exercise by the agency syndicate of an option to increase the size of the offering. The offering was completed by a syndicate of agents led by Pacific International Securities Inc., and including PowerOne Capital Markets Ltd. and Fraser Mackenzie Ltd.
Each unit consists of one common share in the capital of the company and one-half of one transferable common-share purchase warrant. Each warrant will entitle the holder to purchase one additional common share in the capital of the company at a price of 80 cents for a period of 18 months following the closing date.
The agents were entitled to a commission of 6 per cent of the gross proceeds raised pursuant to the offering, which amounted to approximately $600,599. The agents elected to receive $162,100 of this commission in cash and the remainder in the form of 797,270 commission units at a prescribed value of 55 cents per commission unit. The commission units have identical terms as the units. The agents also received 1,091,997 compensation options equal to 6 per cent of the number of units issued in connection with the offering. Each compensation option entitles the agents to purchase one additional common share of the company at a price of 65 cents per common share for a period of 18 months following the closing date of the offering.
The net proceeds raised in the offering will be used to further explore the company's Northern Dancer tungsten-molybdenum deposit in the Yukon and the Maracas vanadium-PGM deposit in Brazil.