Largo Resources Agrees to Repurchase Additional US$8.1 Million of its 9.25% Senior Secured Notes Due 2021
TORONTO, Jan. 9, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce that it has agreed to repurchase and retire an additional US$8.1 million in aggregate principal amount plus premium and accrued and unpaid interest. Following this repurchase for cancellation the remaining aggregate principal amount outstanding on the Company's 9.25% Senior Secured Notes due 2021 (the "Notes") will be approximately US$37.0 million, representing a further decrease of approximately 18% of its current outstanding Notes. The Company is working with Jefferies LLC who will arrange for and facilitate the repurchase of the Notes effective January 28, 2019 at 105.625%.
Mark Smith, Chief Executive Officer for Largo, stated: "Largo continues to make debt reduction a priority and has taken advantage of an additional opportunity to further eliminate a portion of its Notes by US$8.1 million. This repurchase for cancellation represents a significant decrease of approximately 75% of the Company's total outstanding Notes since May 2018 which is something the Company is extremely proud of."
About Largo Resources
Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.com.
This press release contains forward-looking information under Canadian securities legislation. 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.
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