Largo Resources Announces Resignation of Nominee Director
TORONTO, Feb. 25, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces the resignation of an ARC Funds' (defined below) nominee director, Mr. Sam Abraham from the Board of Directors of the Company ("Board"). Mr. Abraham joined the Board in July 2015 and the ARC Funds have asked him to resign his directorship and will replace this vacancy with a new ARC Funds nominee director for consideration by the Board.
In accordance with the term of the pre-existing and previously announced governance and director nominating agreements among Largo and Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. (collectively, the "ARC Funds"), the ARC Funds were entitled to nominate four directors for so long as they held 50% or more of the issued share capital. At the last annual general meeting held on June 28, 2018, the ARC Fund's four nominees were Messrs. Arias, Abraham, Tellechea and Brace. Following the closing of the secondary offering in July 2018 and a private sale transaction during Q4 2018 the ARC Funds' ownership position in Largo decreased to 45.2% (excluding unexercised warrants) and, as a result, they are now entitled to nominate 3 directors to the Board.
As a result of this vacancy, Mr. Brace will serve as a non-ARC Funds nominee until the next annual general meeting in several months.
J. Alberto Arias, Director to the General Partners for the ARC Funds stated: "The Board nominee positions held by the ARC Funds increased from 3 to 4 during 2016, as a consequence of the ARC Funds providing the main source of financing to Largo during the low point of the vanadium price cycle and the early years of Largo's operational ramp-up. ARC Funds participation in the Company's private placements were guided by our view of the attractive quality of Largo's vanadium assets and that the vanadium price cycle would materially improve due to its supply-demand fundamentals. As the ARC Funds ownership exceeded 50% during 2016, the ARC Funds named an existing member of the Board, Mr. Brace as its fourth nominee, rather than introducing a new Board nominee. We're happy to have Mr. Brace, who is not affiliated with the ARC Funds, continue once again at this time as a non-ARC Fund nominee."
Mark Smith, Chief Executive Officer for Largo, stated: "I would like to take this opportunity to sincerely thank Mr. Abraham for his significant contributions during his tenure as a director of the Company. Sam and the ARC Funds have been an important part of the Largo team for many years and we wish Sam all the best in his future endeavors."
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.
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