TORNOTO, ONTARIO--(Marketwire - Dec. 10, 2008) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES.
Largo Resources Ltd. (TSX VENTURE:LGO) (the "Corporation") announces that the Corporation intends to complete a non-brokered private placement financing of up to $3 million, based on the sale of common shares of the Corporation at a price of $0.06 per common share.
Closing of the offering is anticipated to occur on or before December 29, 2008 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.
The common shares will be subject to resale restrictions for a period of four months plus one day from the closing date. The Corporation may engage selling agents in consideration for a commission of up to 5.0% of the gross proceeds raised by such agents.
The Corporation intends to use the proceeds of the financing for working capital purposes.
Maracas Payment:
Largo is currently engaged in discussions with the vendors of Companhia de Maracas; the Company that controls the Maracas project, for the possibility of an extension of the US$5 million payment that is due December 24, 2008.
While there has been no agreement, Largo is optimistic that a solution will be found. In the event that an extension can be negotiated and Largo does not make the payment required to acquire an additional interest in Companhia de Maracas, then Largo will continue to hold an approximate 45% interest in Companhia de Maracas.
Operations:
Largo continues to work diligently in order to reduce the estimates of capital expenditure and cash operating costs at the Maracas project.
Internal projections are for capital expenditure costs of approximately US$220 million, as compared to the feasibility study estimate of US$270 million, and cash operating costs of US$12.75 per kilogram as compared to an estimate of US$15.49 in the feasibility study. Largo expects to be able to further reduce these estimates.
Once in production, Largo projects production of approximately 4,500 tonnes per year of Vanadium. Latest price for Vanadium according to Metal-Pages is approximately US$34.85 per kilogram.
About Largo
Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO.
For more information please refer to Largo's website:
www.largoresources.com.
Disclaimer
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the proposed use of proceeds, receipt of regulatory approval; completion of the financing on the terms proposed; Largo's development potential and timetable of the Maracas project; the Largo's ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Maracas project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates; detailed research and analysis completed by independent consultants; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building a mine in Brazil and other factors that will be described in the technical report summarizing the Feasibility Study filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on extensive research of the Largo and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the Feasibility Study. Production estimates are based on mine plans and production schedules, which have been developed by the Largo's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
