Largo Resources Ltd.

Largo Resources Ltd.

November 09, 2011 14:16 ET

Largo Resources Receives Final Commitment from Commercial Banks for US$150 Million Financing for the Maracas Vanadium Project, Bahia, Brazil

- Maracas Project Now Ready to Enter Into Construction Phase

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or the "Company") is pleased to announce that Vanadio de Maracas Ltda., a 100% owned Brazilian subsidiary of Largo, has received binding commitments from a consortium of commercial banks led by Banco Itaú BBA S.A. ("Itaú BBA"), a subsidiary of Itaú Unibanco Group and one of Brazil's leading banks, for guarantees of a Brazilian Development Bank ("BNDES") loan facility in the principal amount of up to US$150 million for the development of its Maracas Vanadium Project in Bahia State, Brazil.

Mark Brennan, President and Chief Executive Officer of Largo Resources, stated "We cannot understate our excitement at having received the commitment by the commercial banks to guarantee the BNDES facility." He added, "Following the issuance of the Enquadramento by the BNDES (see press release October 31, 2011) and the Installation License (see press release October 24, 2011) we are now in a position to make the Maracas project a reality."

The facility has an eight year term with a two year grace period for the repayment of principal. The interest rate with respect to the financing from BNDES, is yet to be determined but will be calculated based on a combination of the long term interest rate used by BNDES and the currency basket of the average cost of BNDES's long term own debt, such amounts to be determined by BNDES.

Largo's subsidiary, Vanadio de Maracas Ltda., shall receive up to US$150 million of funds from the BNDES on a pari passu 60:40 basis with equity contributions from Largo from the subscription receipt financing completed in April 2011. The commercial banks shall provide a project guarantee to the BNDES and take on the project risk.

The commitment by the commercial banks to guarantee the BNDES facility is the final requirement by the BNDES to commence the finalization of the financing. The next step will be to complete legal documentation and paperwork that are customary and standard in securing BNDES funding. The completion of the documentation is standard procedure and does not include technical diligence or project evaluation. A more comprehensive news release on the terms of the loan will be issued when final documents are received.

About Largo

Largo Resources Ltd. 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. The Company also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. The company is listed on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website:


This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to completion of the financing on the terms proposed; Largo's development potential and timetable of the Maracas project; Largo's ability to raise additional funds necessary; 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. 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 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 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. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.


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