Arias Resource Capital to sell $41M Largo Resources shares

CPE Media News – pcJournal (7/20/2018) – Largo Resources Ltd. (TSX: LGO; OTCQX: LGORF) has priced previously announced secondary offering for an aggregate of 60,000,000 common shares at a public offering price of $1.40 per share for aggregate proceeds of $84,000,000 to selling shareholders.

The selling shareholders include Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P., Arias Resource Capital Fund II (Mexico) L.P., The Cranley Trust, Cranley Investments Holdings, LLC, and Mark Smith.

The selling shareholders have been granted a 30-day option to the underwriters for an additional 9,000,000 common shares.

Arias Resource Capital funds expect to sell approximately 48.5% of the offered shares for approximately $40.7 million. Upon closing of the offering, Arias Resource Capital funds will continue to control over 47% of Largo resources shares on a non-diluted basis or over 49% on partially diluted basis.

photo credit: Largo Resources Ltd.

News Release

Largo Resources Announces Pricing of Secondary Offering

TORONTO — Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) announced today the pricing of the previously announced secondary offering by the selling shareholders listed below for an aggregate of 60,000,000 common shares at a public offering price of $1.40 per share, for an aggregate price to the public of $84,000,000 (the “Offering”). The Offering is expected to close on or about July 24, 2018, subject to customary closing conditions. The underwriters have been granted a 30-day option to purchase up to an additional 9,000,000 common shares from the selling shareholders. The Company will not receive any proceeds from the Offering.

Credit Suisse Securities (Canada), Inc. and Morgan Stanley Canada Limited co-led the Offering, with CIBC Capital Markets acting as joint bookrunner, and Cormark Securities Inc., H.C. Wainwright & Co., LLC and Mackie Research Capital Corp. acting as co-managers.

The selling shareholders under the Offering consist of Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P., Arias Resource Capital Fund II (Mexico) L.P., The Cranley Trust, Cranley Investments Holdings, LLC, and Mark Smith.

The common shares subject to the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, (the “Securities Act”) and may not be offered or sold in the United States absent registration under or an applicable exemption from the registration requirements of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy the shares herein described, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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.

For further information please contact:
Largo Investor Relations
ir@largoresources.com
Tel: +1 416-861-9797


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