TORONTO, ONTARIO--(Marketwired - Jan. 9, 2017) -
FOR DISSEMINATION IN CANADA AND OVER CANADIAN NEWS SERVICES ONLY
Cranley Investment Holdings LLC ("CIH") announced today that it has acquired ownership of and control over an additional 10,450,000 Units of Largo Resources Ltd. ("Largo") at a price of CDN$0.45 per Unit for an aggregate subscription price of CDN$4,702,500 pursuant to the first tranche (the "First Tranche") of Largo's previously announced non-brokered private placement offering (the "Offering"). The Offering was announced by Largo on December 28, 2016.
Each Unit consists of one common share in the capital of Largo ("Common Shares") and one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant issued in the First Tranche entitles the holder thereof to acquire one Common Share at a price of CDN$0.65 per Common Share for a period of three years from the closing of the First Tranche.
Mr. Alberto Beeck, a director of Largo, manages CIH and retains the power to make investment and voting decisions in respect of the Common Shares owned by CIH. Prior to the closing of the First Tranche, CIH owned and controlled 33,163,006 Common Shares representing 7.82% of Largo's then issued and outstanding Common Shares. Following the closing of the First Tranche, CIH has direct or indirect ownership of and control over 43,613,006 Common Shares, representing 9.54% of Largo's issued and outstanding Common Shares.
Mr. Beeck is the investment advisor for Cranley Trust and retains the power to make investment and voting decisions in respect of the Common Shares owned by Cranley Trust, which has direct or indirect ownership of and control over 3,858,118 Common Shares, representing 0.84% of Largo's issued and outstanding Common Shares. CIH and Cranley Trust are referred to herein as the "Beeck entities".
Prior to the closing of the First Tranche, the Beeck entities collectively had direct or indirect ownership and control over 37,021,124 Common Shares representing 8.74% of Largo's then issued and outstanding Common Shares. Following the closing of the First Tranche, the Beeck entities collectively have direct or indirect ownership and control over 47,471,124 Common Shares representing 10.38% (or 14.72% in the event that Mr. Beeck and the Beeck entities exercised all of the convertible securities held by them) of Largo's issued and outstanding Common Shares.
The Units were acquired by CIH for investment purposes only. CIH may, from time to time, subject to all necessary regulatory approvals, acquire additional Common Shares and/or dispose of such Common Shares as it deems appropriate.
This news release has been disseminated in accordance with the early warning requirements of Canadian provincial securities laws.
For further information including a copy of the corresponding report filed with Canadian provincial securities regulators, please contact the listed below.
The dissemination of this release in the United States or to any United States news service may constitute a violation of U.S. securities laws.