closing of second and final tranche of private placement argo Resources announces closing of second and final tranche of private placement for aggregate proceeds of $35.5 million
Wednesday, December 13, 2017, 9:48 PM ET
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TORONTO, Dec. 13, 2017 /CNW/ - Largo Resources Ltd. (TSX - LGO) (the "Corporation") is pleased to announce the closing of the second tranche ("Second Tranche") of its previously announced non-brokered private placement of Units (as defined below) at a price of $0.82 per Unit (the "Offering Price"), for aggregate gross proceeds of approximately $35.5 million (the "Offering"). In order to accommodate demand, Largo has also increased the size of the Offering by an additional $500,000 since its press release of December 7, 2017 announcing the initial increase from $25M to $35M.
The Corporation raised gross proceeds of $21,416,544.30 in the Second Tranche through the issuance of 26,117,737 Units and also settled long-term debt of $5,991,686.51 (the "Debt Settlement") through the issuance of an additional 7,306,934 Units to an arm's length lender (see below), for an aggregate issuance under this Second Tranche of 33,424,671 Units. Combined with the gross proceeds raised in the First Tranche of $8,091,769.84 through the issuance of 9,868,012 Units and including the Debt Settlement, the Offering has resulted in effective proceeds to the Corporation of approximately $35.5 million. No finders' fees were paid and no finders' warrants were issued in connection with the Offering. The Corporation intends to use the proceeds for working capital.
Each Unit consists of one common share in the capital of the Corporation and one half of one common share purchase warrant, with each whole warrant exercisable into one common share at a price of $1.15 for five years