Largo Resources Ltd. (TSX: LGO; OTCQB: LGORF) has closed the first tranche of its previously announced non-brokered private placement offering, issuing 33,524,007 units at $0.45 per unit for gross proceeds of $15,085,803.15.
Of the gross proceeds from the first tranche, US $10 million will be used to satisfy the initial payment under the Working Capital Injection Condition by a syndicate of Brazilian commercial lenders.
Funds managed by Arias Resource Capital Management LP acquired aggregate of 14,395,675 units for $6,478,053.75. Prior to the closing of the 1st tranche, the ARC Funds owned 59.86% of Largo’s then issued and outstanding shares and following closing of the 1st tranche, ARC Funds will own 58.62% (or 66.04% in the event that the ARC Funds and its affiliates exercised all of the convertible securities held by them) of the issued and outstanding shares.
Cranley Investment Holdings LLC managed by Alberto Beeck, Managing Partner of VH Properties and VH Investments and a director of Largo, subscribed for an aggregate of 10,450,000 units for $4,702,500. Prior to the closing of the first tranche, Cranley Investment Holdings LLC and Cranley Trust owned 8.74% of issued and outstanding shares and following closing of 1st trance, the entities will own 10.38% (or 14.72% in the event that Beeck and these entities exercised all of the convertible securities held by them) of Largo’s issued and outstanding shares.
photo credit: Largo Resources