Financing Largo closes $547,701 final tranche of financing
Largo Resources Ltd (2) (C:LGO)
Shares Issued 412,654,882
Last Close 10/4/2016 $0.42
Tuesday October 4 2016 - News Release
Mr. Alex Guthrie reports
LARGO ANNOUNCES CLOSING OF THE THIRD AND FINAL TRANCHE OF PRIVATE PLACEMENT OFFERING FOR AGGREGATE GROSS PROCEEDS OF CDN$5MILLION
Largo Resources Ltd. has closed the third and final tranche of its $5-million private-placement offering of units of the company.
The closing of the Final Tranche resulted in gross proceeds to the Company of CDN$547,701.30 from the sale of 1,217,114 Units, which, together with the first and second tranche of the Offering (see the Company's news releases of September 7 and 12, 2016), has resulted in aggregate proceeds to the Company of CDN$5 million from the sale of an aggregate of 11,111,111 Units. The proceeds realized from the Offering will be used for ongoing working capital requirements at the Company's Maracas Menchen Mine and for general corporate and working capital purposes, including, without limitation, exploring a potential listing on a U.S stock exchange.
Each Unit was sold at a price of CDN$0.45 and consists of one common share of the Company (each, a "Common Share"), and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant issued in the Final Tranche will be exercisable into one Common Share at a price of CDN$0.65 per share for a period of three years from closing of the Final Tranche. All securities issued in the Offering are subject to a four-month hold from the date of issuance.
Funds managed by Arias Resource Capital Management LP (the "ARC Funds") purchased an aggregate of 428,232 Units in the Third Tranche for gross proceeds to the Company of CDN$192,704.40. Prior to the closing of the Third Tranche of the Offering the ARC Funds owned 59.93% of the Company's then issued and outstanding Common Shares and following closing of the third Tranche, the ARC Funds will own 59.86% (or 66.59% in the event that the ARC Funds exercised all of the convertible securities held by them). The shareholders of the Company approved the creation of the ARC Funds as a control person of the Company at the annual and special meeting of the shareholders of the Company held on June 27, 2013.